Compare the same numbers
A lower monthly payment does not automatically mean a lower-cost loan. Compare the vehicle price, optional products, taxes and fees, down payment, trade value and total amount financed for each offer.
Then compare the APR, term, monthly payment, total of payments and total interest. Using the same vehicle price and down payment makes differences between offers easier to see.
Understand how term changes the total
A longer term can reduce the monthly payment while increasing the total interest paid. Choose a payment that fits the budget without losing sight of the full cost over the life of the loan.
A calculator can help you test assumptions, but it is an estimate rather than an approval or credit offer. Actual terms depend on the lender, applicant and vehicle.
Review before you sign
Ask which products and fees are optional, and get the out-the-door price in writing. Review the final contract against the offer you chose before signing.
Keep room in the ownership budget for insurance, fuel, maintenance and repairs. Those expenses do not appear in the loan payment but still affect affordability.