The interest on your car loan can add thousands to your out-the-door price over time. A few percentage points or extra loan years dramatically change your total cost. See exactly what you'll pay before committing to any financing.
Interest is charged on your remaining balance each month. Early payments go mostly toward interest; later payments go mostly toward principal. A $30,000 loan at 7% over 60 months means paying $35,580 total—$5,580 in interest alone.
Longer terms lower monthly payments but increase total interest dramatically. That same $30,000 at 7% costs $5,580 in interest over 60 months but $8,440 over 84 months—a $2,860 difference. Short terms save money long-term.
A 3% rate difference seems small but adds up. $30,000 over 60 months at 4% costs $2,040 in interest. At 7%, it costs $5,580—almost triple the interest. This is why shopping for rates matters.
Larger down payments reduce your loan amount, which reduces total interest paid. Putting $5,000 down on that $30,000 car means financing $25,000. At 7% over 60 months, you'd pay $4,650 in interest—saving $930.
Use our calculator: enter loan amount, interest rate, and term. It shows your monthly payment and total interest paid over the loan's life.
Excellent credit (750+) can get 4-6% on new cars, 5-8% on used. Good credit (700-749) sees 6-9%. Rates change with market conditions.
Sometimes. Longer terms may carry higher rates since they're riskier for lenders. Plus, you pay interest for more months.
Yes—you pay no interest. But 0% deals often can't be combined with rebates. Compare 0% APR vs. rebate with regular financing to see which saves more.
Usually yes. Extra payments reduce principal, which reduces future interest. Check your loan terms for prepayment penalties first.
Significantly more than a 60-month loan. A $30,000 loan at 7% costs $5,580 in interest over 60 months, $7,420 over 72 months, and $9,360 over 84 months.
If rates have dropped or your credit improved, refinancing can lower your rate and total interest. Calculate whether savings exceed refinancing costs.
Used cars are riskier collateral—they're worth less and depreciate unpredictably. Lenders charge higher rates to offset this risk.