1. What is the Car Loan Payment Formula?

The car loan payment formula calculates the fixed monthly payment required to repay a car loan over a specified term. It accounts for the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (USD)
• \( P \) — Principal loan amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of monthly payments (loan term in months)

Explanation: The formula calculates the fixed payment that covers both principal and interest each month, resulting in full loan repayment by the end of the term.

3. Florida-Specific Considerations

Details: Florida has no state income tax, which may affect your overall budget for car payments. However, Florida does have sales tax (6% state + local county taxes) on vehicle purchases.

4. Using the Calculator

Tips: Enter the total loan amount (after any down payment), the annual interest rate (APR) offered by your lender, and the loan term in months (e.g., 60 for 5 years).

5. Frequently Asked Questions (FAQ)

Q1: What's a typical car loan term in Florida?
A: Most car loans in Florida range from 36 to 72 months, with 60 months (5 years) being very common.

Q2: What interest rates can I expect in Florida?
A: Rates vary by credit score. As of 2023, average rates range from 3-5% for excellent credit to 10-15% for poor credit.

Q3: Does Florida have any special auto loan regulations?
A: Florida has standard usury laws capping interest rates at 18% for most loans, with some exceptions up to 30%.

Q4: Should I include sales tax in the loan amount?
A: Many Florida buyers roll sales tax into their loans, but this increases both the principal and total interest paid.

Q5: What's the average car loan amount in Florida?
A: The average new car loan in Florida is about $35,000, while used car loans average around $22,000.