A longer term divides repayment into more months, so the payment may fall. That does not mean the loan is cheaper. More time can mean more interest and a longer period owing more than the vehicle is worth.
What is happening underneath
The monthly number answers 'Can I survive this month?' The total of payments answers 'What did this decision cost?' You need both.
Find thisNumber of monthly payments
Then thisFinance charge
Do not missTotal of payments
Your three moves
- Compare at least two terms at the same amount financed.
- Add insurance and expected ownership costs.
- Choose the total cost before negotiating the monthly number.
Use this sentence
“Keep the vehicle price and down payment fixed. Show me the payment, finance charge, and total for each term.”
What to watch for
A dealer can hit almost any monthly target by changing term, down payment, trade treatment, or financed products.
Official starting points
Rules, programs, and deadlines can change. Start with the current official pages below and the documents in front of you.