Rates and tax rules checked November 5, 2026
Auto loan calculator by credit score
Estimate your car payment, then see what every credit score tier would pay on the same car. Built on Experian's Q2 2026 average rates for new and used cars and New Jersey's sales tax rules, trade-in credit included.
Your numbers
The agreed price before tax, fees, rebates and your trade-in.
Average for 601 to 660 on a new car (Experian, Q2 2026). Have a quote? Type it in.
Rebate, dealer fees and New Jersey tax
Lowers the loan, not the tax: New Jersey taxes the price before rebates.
The dealer's paperwork charge. The state does not require it, and it is taxed.
Starts at $85 for a title with one loan on it plus $84 registration, the most a passenger car pays. Not taxed.
New Jersey charges 6.625% on new and used cars, electric cars included.
New cars pay New Jersey's one-time 0.4% surcharge at a price of $45,000 or more, or at any price when rated under 19 mpg.
Estimated monthly payment
$713
$38,819 financed · 9.71% APR · 72 months
What the loan covers
- Car price
- $40,000
- Sales tax, 6.625% of $40,000
- $2,650
- MVC title and registration
- $169
- Down payment
- −$4,000
- Amount financed
- $38,819
- Interest over 72 months
- $12,552
- All 72 payments
- $51,371
Every loan length at 9.71%
| Months | Monthly | Total interest |
|---|---|---|
| 36 | $1,247 | $6,084 |
| 48 | $979 | $8,180 |
| 60 | $819 | $10,337 |
| 72Yours | $713 | $12,552 |
| 84 | $639 | $14,827 |
Uses the same rate for every length. A lender may quote a different rate for a longer loan.
Same car, every credit score
At the Q2 2026 averages for a new car, a score of 781 or higher would save you $98 a month and $7,119 in interest over this 72-month loan, compared with a score of 601 to 660.
| Credit score and rate | Monthly | Vs. you, a month | Vs. you, interest |
|---|---|---|---|
| 781 or higherSuper prime · 4.41% | $615 | Save $98 | Save $7,119 |
| 661 to 780Prime · 6.15% | $646 | Save $67 | Save $4,852 |
| 601 to 660YouNear prime · 9.71% | $713 | Yours | Yours |
| 501 to 600Subprime · 13.52% | $790 | +$77 | +$5,505 |
| 300 to 500Deep subprime · 16.11% | $844 | +$131 | +$9,426 |
Every row uses its tier's Q2 2026 average rate for a new car and the same price, down payment, trade-in, taxes and fees. "Interest" is over the whole loan.
Loan balance by year
Half the loan is paid off by the end of year 4. Point at the chart, or focus it and use the arrow keys, to read any year.
Year-by-year schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $5,012 | $3,550 | $33,807 |
| Year 2 | $5,521 | $3,041 | $28,287 |
| Year 3 | $6,081 | $2,481 | $22,206 |
| Year 4 | $6,699 | $1,863 | $15,507 |
| Year 5 | $7,379 | $1,183 | $8,128 |
| Year 6 | $8,128 | $434 | $0 |
Estimates for a simple-interest, fixed-rate car loan. Brillant Credit is not a lender or a dealer and does not offer loans or rates. The APR and amount financed on your signed retail installment contract are the numbers that count.
What your credit score costs on a car
The same car, five credit scores, five different payments.
Take a $40,000 new car in New Jersey with $4,000 down and a 72-month loan. Sales tax (6.625%) and $169 in MVC title and registration fees go into the loan, so $38,819 is financed. Only the credit score changes.
| Credit score | New-car APR | Monthly | Interest, life of loan |
|---|---|---|---|
| 781 or higher | 4.41% | $615 | $5,433 |
| 661 to 780 | 6.15% | $646 | $7,700 |
| 601 to 660 | 9.71% | $713 | $12,552 |
| 501 to 600 | 13.52% | $790 | $18,057 |
| 300 to 500 | 16.11% | $844 | $21,978 |
Against 781 or higher, a score of 601 to 660 pays $98 more a month and $7,119 more in interest; 501 to 600 pays $175 more a month and $12,624 more; 300 to 500 pays $229 more a month and $16,545 more. Unlike mortgage insurance, none of that drops off: the rate lasts the whole loan unless you refinance.
Car loan rates by credit score
Average APR by credit score tier, new and used cars, Q2 2026.
From Experian's State of the Automotive Finance data, scored with VantageScore 4.0. Rates are averages across every loan length and lender. Across all borrowers, new-car loans averaged 6.35% on $43,610 over 69.46 months, and used-car loans 11.19% on $27,852 over 67.86 months.
| Credit score | Tier | New-car APR | Used-car APR | Avg. payment, new | Avg. payment, used |
|---|---|---|---|---|---|
| 781 or higher | Super prime | 4.41% | 6.29% | $741 | $534 |
| 661 to 780 | Prime | 6.15% | 8.81% | $770 | $528 |
| 601 to 660 | Near prime | 9.71% | 13.93% | $816 | $555 |
| 501 to 600 | Subprime | 13.52% | 19.10% | $805 | $567 |
| 300 to 500 | Deep subprime | 16.11% | 21.62% | $779 | $570 |
Average payments are Experian's, taken from the loans each tier actually took out, so they do not line up with the rates: the 300 to 500 tier's new-car average ($779) is below the 601 to 660 tier's ($816). The calculator above prices the same car for every tier.
New Jersey car sales tax
What New Jersey taxes, and what it doesn't.
- 6.625% on new and used cars. The same rate for both, and for electric cars bought on or after July 1, 2025.
- Your trade-in comes off first. A $10,000 trade-in saves $662.50 in tax, when you trade it in to the dealer in the same deal.
- Rebates don't lower the tax. Tax is charged on the price before any manufacturer rebate, so a rebate lowers your loan but not your tax.
- The dealer's doc fee is taxed; MVC fees are not. Title ($85 with one loan on it) and registration ($46.50 to $84.00 for a passenger car) are added untaxed.
- A 0.4% surcharge on some new cars. New passenger cars priced at $45,000 or more, or rated under 19 mpg, pay it once.
Sources: NJ Consumer Automotive Tax Guide, NJ zero emission vehicle notice, NJ luxury surcharge, MVC title fees, MVC registration fees.
Where Brillant Credit fits
Shopping for a car soon? Check your reports first.
Brillant Credit is a Montclair-based credit repair service working with car and home buyers across New Jersey. We are not a lender or a dealer and do not set rates. On a free credit call, Armand's team goes through your three reports with you, points out what looks inaccurate or outdated, and tells you plainly what is worth disputing before a dealer pulls your credit.
No one, including Brillant Credit, can promise a score change, an approval or a rate.
Credit score and car loan questions
Straight answers, with the numbers behind them.
Each answer comes from the sources listed below. This page is educational and is not financial or tax advice.
How much does your credit score affect a car payment?
On a $40,000 new car in New Jersey with $4,000 down and a 72-month loan, Experian's Q2 2026 averages put a score of 781 or higher at $615 a month and a score of 601 to 660 at $713: $98 more a month and $7,119 more in interest over the loan. At 300 to 500 the gap grows to $229 a month and $16,545 in interest.
What are average car loan rates by credit score right now?
In Experian's data for the second quarter of 2026, the average new-car APR runs from 4.41% at 781 or higher to 16.11% at 300 to 500, and the average used-car APR from 6.29% to 21.62%. Across all borrowers the averages were 6.35% for new cars and 11.19% for used. Experian scores these tiers with VantageScore 4.0.
What car loan rate can I get with a 700 credit score?
A 700 falls in Experian's prime tier, which runs from 661 to 780. That tier averaged 6.15% on new cars and 8.81% on used cars in Q2 2026. Experian does not split the tier further, and each lender sets its own score cut-offs, so ask where yours fall and type the rate you are quoted into the calculator.
Can you get a car loan with a 500 credit score?
Loans are made in Experian's deep subprime tier (300 to 500): it averaged 16.11% APR on new cars and 21.62% on used cars in Q2 2026. On the $40,000 example car, that rate costs $16,545 more in interest than a score of 781 or higher. Nobody, including Brillant Credit, can promise an approval or a rate.
Does New Jersey charge sales tax on the full price when I trade in a car?
No, if you trade it in to the dealer in the same deal. New Jersey takes the trade-in credit off the price before the 6.625% tax, so a $10,000 trade-in saves $662.50 in sales tax. The credit applies only when the trade-in goes to a registered dealer that takes it for resale and both contracts are signed at the same time.
Are rebates and dealer doc fees taxed in New Jersey?
Yes to both. New Jersey charges sales tax on the price before any manufacturer rebate, and the dealer's documentary fee counts as part of the taxed price. MVC title and registration fees are not taxed. The calculator applies all three rules. New cars priced at $45,000 or more, or rated under 19 mpg, also pay a one-time 0.4% state surcharge.
Is car loan interest tax deductible?
For 2025 through 2028, the IRS allows up to $10,000 a year of interest on a loan for a new car, SUV, minivan, pickup or motorcycle that had its final assembly in the United States, taken out after December 31, 2024. Used vehicles and leases do not qualify, and the deduction phases out above $100,000 of modified adjusted gross income ($200,000 for joint filers). Ask a tax professional about your own return.
Does this calculator check my credit or keep what I type?
No. It never pulls a credit report, so it cannot affect your score, and it has no submit button: you pick a score tier yourself, and the numbers are worked out on the page as you type.
Sources
Every number on this page, checked November 5, 2026.
- Experian: Average Car Loan Interest Rates by Credit Score (Sep 10, 2026)Experian data as of Q2 2026, VantageScore 4.0: average APR and monthly payment for new and used cars in five score tiers. The calculator's starting rate for each tier.
- Experian: Auto Loan Rates and Financing (Sep 10, 2026)Q2 2026 averages from Experian's State of the Automotive Finance Market: 6.35% new and 11.19% used, loans of $43,610 and $27,852, terms of 69.46 and 67.86 months.
- NJ Division of Taxation: Motor vehicle Sales Tax questions"The rate is 6.625% on the purchase price of a new or used vehicle" (last updated 09/09/25).
- NJ Division of Taxation: Consumer Automotive Tax GuideWhat is in the taxed price: documentary fees yes, MVC title and registration fees no, rebates taxed, trade-in credit when traded to the dealer in the same deal.
- NJ Division of Taxation: Zero emission vehicle Sales Tax noticeElectric cars bought on or after July 1, 2025 pay the full 6.625%.
- NJ Division of Taxation: Luxury and Fuel-Inefficient Vehicle SurchargeA one-time 0.4% on new passenger cars priced at $45,000 or more, or rated under 19 mpg (last updated 09/22/25).
- NJ MVC: Title fees$60 standard, $85 with one lien, $110 with two liens.
- NJ MVC: Registration feesPassenger cars $46.50 to $84.00, by weight (under or over 3,500 lbs) and whether the car is within 2 model years.
- IRS Tax Tip 2026-79: car loan interest could be eligible for a tax deduction (Nov. 3, 2026)Up to $10,000 a year of interest on loans for new cars assembled in the United States, 2025 to 2028; phases out above $100,000 of income ($200,000 joint).
Written by Brillant Enterprises LLC for New Jersey car buyers. Rates change every quarter and every lender prices differently; this page is educational, is not financial or tax advice and is not an offer of credit.
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