Question 1

What if the rate on a $25,000 car loan over 7 years were one point higher?

Accepted Answer

The payment would rise from $389.66 to $402.23, which is $12.57 more each month. One point lower would give $377.32.

Question 2

Would paying $40 extra each month shorten a $25,000 car loan over 7 years?

Accepted Answer

Yes. On this $25,000 loan an extra $40 each month ends the loan 10 months sooner and saves $990 of interest.

Question 3

Is 7 years the right length for a $25,000 car loan?

Accepted Answer

It depends on the monthly payment you can carry. At 8 percent this term costs $389.66 a month. A 5-year term would cost $506.91 a month and $5,415 in interest, compared with $7,731 over 7 years.

Question 4

Does adding a year to a $25,000 car loan over 7 years change the cost much?

Accepted Answer

Yes. At 8 percent a 7-year term costs $7,731 in interest. A 8-year term would lower the payment to $353.42 but raise interest to $8,928.

Year	Principal paid	Interest paid	Balance left
1	$2,776	$1,900	$22,224
2	$3,007	$1,669	$19,217
3	$3,256	$1,420	$15,961
4	$3,526	$1,149	$12,435
5	$3,819	$857	$8,615
6	$4,136	$540	$4,479
7	$4,479	$196	$0

$25,000 Auto Loan Payment Over 7 Years

How the payment is worked out

Worked example

Questions about this calculator

What if the rate on a $25,000 car loan over 7 years were one point higher?

Would paying $40 extra each month shorten a $25,000 car loan over 7 years?

Is 7 years the right length for a $25,000 car loan?

Does adding a year to a $25,000 car loan over 7 years change the cost much?

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