How it works
How it works
Amount financed = price + sales tax + fees − down payment − trade-in value + amount still owed on the trade-in. Sales tax is charged on the price minus the trade-in where your state allows that credit. The monthly payment uses the standard amortization formula. If you pay tax and fees upfront, untick the box and they are added to your cash due at signing instead.
Frequently asked questions
Is a longer car loan a good idea?
A longer term lowers the monthly payment but raises total interest, and you may owe more than the car is worth for longer. Compare the total interest line for 60 vs. 72 months.
Sources
- Consumer Financial Protection Bureau: What is amortization?
- Consumer Financial Protection Bureau: Auto loans