A $40,000 car loan at 6% interest for 60 months (5 years) has a monthly payment of $773. Over the life of the loan, you will pay $6,399 in total interest, making the total cost $46,399.

Key Numbers

• •Monthly payment: $773
• •Total interest over 60 months: $6,399
• •Total cost of the loan: $46,399
• •A 72-month loan lowers the payment to $663 but adds $1,331 in interest