Calculate your monthly payment, total interest, and amortization for your new vehicle.
Buying a car is one of the largest purchases most people make. Understanding how financing works can save you thousands of dollars in interest over the life of the loan.
The cost of borrowing money. A lower score (e.g., 3-5%) is excellent, while scores above 10% significantly increase your monthly payment.
How long you have to pay back the loan. Longer terms (72-84 months) lower your monthly payment but increase total interest paid.
The 20/4/10 Rule: Put 20% down, finance for no more than 4 years, and keep payments under 10% of your monthly income.
Gap Insurance: If you put less than 20% down, consider Gap Insurance to cover the difference if the car is totaled.
