Understand the cost of financing

Compare the numbers that matter

When comparing auto loans, look at the APR, amount financed, loan term, finance charge, down payment and total of the payments. A lower monthly payment can result from a longer term rather than a cheaper loan.

Consider pre-approval

Before visiting a dealer, you can compare financing from banks, credit unions and other lenders. A pre-approval can give you a reference point when evaluating dealer financing.

Keep the vehicle price separate

Try to establish the vehicle's out-the-door price before discussing financing. This helps you see the purchase price and the cost of credit as separate decisions.

Use the calculator carefully

Our car payment calculator estimates principal, monthly payment and interest. It does not include every tax, fee or lender-specific charge.