A $40,000 car loan at 8% interest for 60 months (5 years) has a monthly payment of $811. Over the life of the loan, you will pay $8,663 in total interest, making the total cost $48,663.

Key Numbers

• •Monthly payment: $811
• •Total interest over 60 months: $8,663
• •Total cost of the loan: $48,663
• •A 72-month loan lowers the payment to $701 but adds $1,832 in interest