A $25,000 car loan at 8% interest for 60 months (5 years) has a monthly payment of $507. Over the life of the loan, you will pay $5,415 in total interest, making the total cost $30,415.

Key Numbers

• •Monthly payment: $507
• •Total interest over 60 months: $5,415
• •Total cost of the loan: $30,415
• •A 72-month loan lowers the payment to $438 but adds $1,145 in interest