Amount financed vs sticker price
You only pay interest on the amount financed โ the price minus your down payment and trade-in. A bigger down payment lowers both the monthly payment and the total interest.
Why loan term matters
Stretching to 72 or 84 months lowers the monthly payment but raises total interest and risks being โupside downโ (owing more than the car is worth). 48โ60 months is a common sweet spot.
Frequently asked questions
Does this include tax and fees?
No โ sales tax, title, registration and dealer fees are extra and are often rolled into the financed amount, which raises the payment.
What APR should I expect?
It depends on your credit score and the lender. New-car APRs are usually lower than used; getting pre-approved by your bank or credit union gives you a benchmark.