3. Choose Loan Term
Decide how many months you’ll take to repay the loan. Common terms are 36, 48, 60, or 72 months. Longer terms mean lower monthly payments but more interest overall.
Once all this is entered, hit “Calculate”—and voilà, your monthly payment will appear instantly.
Real-Life Example: Comparing Loan Scenarios
Here’s a comparison of how loan terms affect your monthly payments and total cost:
| Loan Amount | Interest Rate | Loan Term | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
| $15,000 | 6% | 36 months | $456.07 | $1,418.52 |
| $15,000 | 6% | 60 months | $289.99 | $2,399.40 |
| $15,000 | 6% | 72 months | $247.02 | $2,985.44 |
👉 Observation: The longer the loan, the smaller your monthly payments—but the more you pay in interest.
Tips to Lower Your Car Loan Payments
You can reduce your monthly payments or the total loan cost using a few simple strategies:
