Secured auto loan calculator

Factors including your principal loan amount, your interest rate (APR), and your loan term all impact the amount of your monthly payment. A portion of your payment goes toward paying down the principal amount, and a portion goes toward interest. You may pay more interest at the beginning of the loan and gradually pay more toward the principal as the loan progresses.

There are benefits and drawbacks to both when it comes to an auto loan. By paying taxes and fees up front, you won’t be incurring interest charges on these fees throughout your loan term, which may lead to lower overall costs, including lower monthly payments. By financing taxes and fees, you may avoid a larger up front payment, and may be able to afford a more expensive vehicle while keeping your monthly payments manageable. This may be a good option if you need to conserve cash or spread out your cost over time.

There are some additional factors to consider when making your decision. If your interest rate is higher, financing taxes and fees will impact your total loan cost. With longer car loan terms, you may pay more interest over time. Your credit profile will impact the rate you qualify for. And some states require up front payment of sales tax on leases.

Common car loan terms typically range from 24 to 84 months, although some lenders may offer shorter or longer terms. Generally, the most popular terms are 36, 48, and 60 months, although longer terms are becoming more common because of rising vehicle prices. At Truist, we offer secured loans of up to 84 months.

The main difference between secured and unsecured loans is that secured loans require collateral and unsecured loans don’t.
 
For instance, a secured home loan uses your home as collateral, and a secured vehicle loan uses your vehicle as collateral. If you fail to pay the loan, you can lose your asset.
 
Unsecured loan benefits include a simpler application and approval process, because there is not a need to secure a title to collateral property.
 
Unsecured loans, also called unsecured personal loans, are backed by your creditworthiness—your past repayment history and your credit score, among other factors. Because of this, interest rates on unsecured loans can be higher than those on secured loans. We only approve good-to-excellent credit profiles for LightStream loans.