$42,000 car loan for 48 months
$1,014.93/month principal and interest, before sales tax
$6,716 total interest over 48 months
Principal $42,000 Interest $6,716. 14¢ of every dollar paid goes to interest.
48 months at 7.47%, the Federal Reserve's average finance rate on 48-month new-car loans at commercial banks (May 2026 survey).
Source: Federal Reserve G.19, May 2026 survey. An average, not an offer.
By credit score
| Credit tier | Score | New-car APR | Payment | Used-car APR | Payment |
|---|---|---|---|---|---|
| Super prime | 781–850 | 4.41% | $956.05 | 6.29% | $991.97 |
| Prime | 661–780 | 6.23% | $990.81 | not reported | — |
| Near prime | 601–660 | 9.67% | $1,058.58 | not reported | — |
| Subprime | 501–600 | 13.44% | $1,135.95 | not reported | — |
| Deep subprime | 300–500 | 16.11% | $1,192.66 | 21.62% | $1,314.61 |
Averages across lenders for loans originated in the quarter, not offers. All tiers combined: 6.35% new, 11.19% used.
By loan term
With sales tax
| State tax rate sales tax (statewide base incl. 1.25% uniform local) | 7.25% |
|---|---|
| Trade-in credit | no |
| Taxable amount | $42,000 |
| Sales tax | $3,045 |
| Financed (price − trade-in + tax) | $45,045 |
| Monthly payment with tax | $1,088.51 |
Trade-in is treated as payment and does not reduce the taxable selling price (CDTFA Pub 34). District taxes add on top of 7.25% depending on the registration address. Only states whose rules we have verified are listed.
Payment and income
The $1,014.93 payment is 10% of gross income at $121,791 a year and 15% at $81,194. Insurance, fuel and maintenance come on top.
Amortization schedule
First 12 months
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $753.48 | $261.45 | $41,246.52 |
| 2 | $758.17 | $256.76 | $40,488.36 |
| 3 | $762.89 | $252.04 | $39,725.47 |
| 4 | $767.63 | $247.29 | $38,957.84 |
| 5 | $772.41 | $242.51 | $38,185.42 |
| 6 | $777.22 | $237.70 | $37,408.20 |
| 7 | $782.06 | $232.87 | $36,626.14 |
| 8 | $786.93 | $228.00 | $35,839.21 |
| 9 | $791.83 | $223.10 | $35,047.39 |
| 10 | $796.76 | $218.17 | $34,250.63 |
| 11 | $801.72 | $213.21 | $33,448.91 |
| 12 | $806.71 | $208.22 | $32,642.21 |
Year by year
| Year | Principal | Interest | Balance at year end |
|---|---|---|---|
| 1 | $9,358 | $2,821 | $32,642 |
| 2 | $10,081 | $2,098 | $22,561 |
| 3 | $10,861 | $1,318 | $11,700 |
| 4 | $11,700 | $479 | $0 |
| Total | $42,000 | $6,716 | $0 |
Full schedule, all 48 payments
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | 753.48 | 261.45 | 41,246.52 |
| 2 | 758.17 | 256.76 | 40,488.36 |
| 3 | 762.89 | 252.04 | 39,725.47 |
| 4 | 767.63 | 247.29 | 38,957.84 |
| 5 | 772.41 | 242.51 | 38,185.42 |
| 6 | 777.22 | 237.70 | 37,408.20 |
| 7 | 782.06 | 232.87 | 36,626.14 |
| 8 | 786.93 | 228.00 | 35,839.21 |
| 9 | 791.83 | 223.10 | 35,047.39 |
| 10 | 796.76 | 218.17 | 34,250.63 |
| 11 | 801.72 | 213.21 | 33,448.91 |
| 12 | 806.71 | 208.22 | 32,642.21 |
| 13 | 811.73 | 203.20 | 31,830.48 |
| 14 | 816.78 | 198.14 | 31,013.70 |
| 15 | 821.87 | 193.06 | 30,191.83 |
| 16 | 826.98 | 187.94 | 29,364.85 |
| 17 | 832.13 | 182.80 | 28,532.72 |
| 18 | 837.31 | 177.62 | 27,695.41 |
| 19 | 842.52 | 172.40 | 26,852.89 |
| 20 | 847.77 | 167.16 | 26,005.12 |
| 21 | 853.04 | 161.88 | 25,152.08 |
| 22 | 858.35 | 156.57 | 24,293.72 |
| 23 | 863.70 | 151.23 | 23,430.03 |
| 24 | 869.07 | 145.85 | 22,560.95 |
| 25 | 874.48 | 140.44 | 21,686.47 |
| 26 | 879.93 | 135.00 | 20,806.54 |
| 27 | 885.41 | 129.52 | 19,921.14 |
| 28 | 890.92 | 124.01 | 19,030.22 |
| 29 | 896.46 | 118.46 | 18,133.76 |
| 30 | 902.04 | 112.88 | 17,231.71 |
| 31 | 907.66 | 107.27 | 16,324.05 |
| 32 | 913.31 | 101.62 | 15,410.75 |
| 33 | 918.99 | 95.93 | 14,491.75 |
| 34 | 924.71 | 90.21 | 13,567.04 |
| 35 | 930.47 | 84.45 | 12,636.57 |
| 36 | 936.26 | 78.66 | 11,700.30 |
| 37 | 942.09 | 72.83 | 10,758.21 |
| 38 | 947.96 | 66.97 | 9,810.25 |
| 39 | 953.86 | 61.07 | 8,856.40 |
| 40 | 959.79 | 55.13 | 7,896.60 |
| 41 | 965.77 | 49.16 | 6,930.83 |
| 42 | 971.78 | 43.14 | 5,959.05 |
| 43 | 977.83 | 37.10 | 4,981.22 |
| 44 | 983.92 | 31.01 | 3,997.30 |
| 45 | 990.04 | 24.88 | 3,007.26 |
| 46 | 996.21 | 18.72 | 2,011.05 |
| 47 | 1,002.41 | 12.52 | 1,008.65 |
| 48 | 1,008.65 | 6.28 | 0.00 |
Questions
What is the monthly payment on a $42,000 car loan for 48 months?
$1,014.93 at 7.47%, the average commercial-bank rate in the Fed's latest survey. Total interest is $6,716.
How much is a $42,000 car loan with bad credit?
At Experian's Q2 2026 average for subprime borrowers (scores 501–600, 13.44% on new cars), $1,135.95 a month over 48 months, versus $990.81 for prime borrowers.
Is 60 or 72 months better for a $42,000 car loan?
At the same 7.14% rate, 72 months lowers the payment from $834.43 to $718.89 but adds $1,694 in interest, and longer loans usually carry higher rates.
What income do I need for a $42,000 car loan?
The $1,014.93 payment is 10% of gross income at $121,791 a year and 15% at $81,194. Many budgets keep car payments near 10–15% of income.
How much does sales tax add to a $42,000 car in California?
$3,045 at the 7.25% state rate (no trade-in credit in this state). Financed with the car, it raises the payment to $1,088.51. Local taxes can add more.
Sources
- New-car loan, 48 months average: 7.47%. Federal Reserve G.19 Consumer Credit, terms of credit at commercial banks, series TERMCBAUTO48NS, as of May 1, 2026; retrieved September 26, 2026.
- Average auto loan APR by credit tier. Experian State of the Automotive Finance Market, Q2 2026; retrieved September 26, 2026.
- State vehicle sales tax and trade-in rules. State revenue departments and DMVs; state rate only, local taxes excluded.
Numbers on this page last changed September 26, 2026. How they are calculated: methodology.