A $20,000 car loan at 8% interest for 60 months (5 years) has a monthly payment of $406. Over the life of the loan, you will pay $4,332 in total interest, making the total cost $24,332.

Key Numbers

• •Monthly payment: $406
• •Total interest over 60 months: $4,332
• •Total cost of the loan: $24,332
• •A 72-month loan lowers the payment to $351 but adds $916 in interest