$86,000 Car Loan Monthly Payment and Interest Rate
Before getting an $86,000 car loan, you should know both the monthly payment on that loan and the interest rate.
The monthly payment of an $86,000 car loan depends on a few different factors; the loan amount, the length of the car loan, and the interest rate.
The most common length of a car loan often referred to as the car loan term, is 72 months. Other popular terms for $86,000 car loans include 36 months, 48 months, 60 months, and 84 months terms.
The longer the term on your $86k car loan, the more interest you will end up paying. That said, your monthly payment will typically be lower the longer the car loan term.
Youâ€™re going to have to decide if a lower monthly payment on an $86k car loan is worth the added cost of interest in the long run.
Table of Contents
Can You Finance an $86,000 Car?
Yes, it is possible to finance an $86,000 car. You can finance the car through both a bank or an auto dealer.
If you finance a car with a bank, you will likely get a better deal. If you try to finance the car with a dealership, the dealership will act as the middleman, and your rates could be higher.
What Is The Monthly Payment on an $86,000 Used Car Loan?
The monthly payment on an $86,000 used car loan will depend on the interest rate and car loan term. When financing a used car, you will potentially get a higher interest rate than you would if you were to finance a new car.
Used cars tend to have higher interest rates because their value is harder to estimate. So if youâ€™re planning on getting an $86k used car loan, be prepared for a higher interest rate.
Learn More: $85,000 Car Loan, $84,000 Car Loan
How Much Should You Put Down on an $86,000 Car?
Your down payment should be a minimum of 20% for a new car or 10% for a used car. So for an $86,000 car, your down payment should be at least $17,200 with 20% down or $8,600 with 10% down.
The length of the car loan is often called the car loan term. It is simply the amount of time you have to pay off the loan.
Itâ€™s a factor in determining how much interest you will end up paying. On top of that, your monthly payment can also change based on how long your car loan term is.
An $86k car loan over 36 months will likely have a higher monthly payment than an $86k car loan over 72 months.
The six most common car loan terms to be aware of are the:
24 month term (2 years)
36 month term (3 years)
48 month term (4 years)
60 month term (5 years)
72 month term (6 years)
84 month term (7 years)
2. Total Interest Paid
When you determine what car loan term to choose, you will want to consider the total amount of interest paid. The longer the length of the loan, the more interest accumulated.
Car loans that are paid off earlier accrue less interest and result in you spending less money overall on the loan. However, shorter-term auto loans mean a larger monthly payment.
The total amount of interest you end up paying will also heavily depend on what interest rate you get. A lower interest rate will decrease the total amount of interest you pay on your $86,000 auto loan. A higher interest rate will do the opposite. It means you will end up paying additional interest on the loan.
3. Purchasing New or Used
There are perks to buying both new and used cars. New cars tend to be more expensive compared to used cars.
Purchasing a used car can mean saving a ton of money, even if itâ€™s only a year or two old. New cars lose around 20% of their value within just the first year alone.
That means if you are looking to purchase a new car, all you have to do is wait 12 months to get a 20% discount.
Thatâ€™s not all. After five years, a car will be worth 60% less due to depreciation. So if you are looking to get a good deal on a used car, consider one around five years old.
4. Additional Costs
Many other costs come in addition to the $86k car loan. Once you buy your car, you may need to replace the headlights, get an oil change, or replace the tires.
Perhaps you want to get a couple of accessories for your car like a phone mount or night vision system with a dashcam.
Whatever the case is, itâ€™s good to be prepared and knowledgeable that purchasing the car with an $86k car loan might not be your only expense.
The monthly payment on an $86,000 car loan can drastically change based on a multitude of factors. Three of the main factors are the interest rate, the car loan length, and the amount borrowed.
Whether this is your first time getting a car loan or youâ€™re an avid car buyer, itâ€™s helpful to understand this information beforehand.
If you enjoyed reading about the monthly payments and interest rates for an $86k car loan, consider checking out our other articles below!