$40,000 Auto Loan Payment Over 4 Years

Questions about this calculator

Would paying $90 extra each month shorten a $40,000 car loan over 4 years?

Yes. On this $40,000 loan an extra $90 each month ends the loan 4 months sooner and saves $549 of interest.

Is 4 years the right length for a $40,000 car loan?

It depends on the monthly payment you can carry. At 6.5 percent this term costs $948.60 a month. A 6-year term would cost $672.40 a month and $8,413 in interest, compared with $5,533 over 4 years.

Does adding a year to a $40,000 car loan over 4 years change the cost much?

Yes. At 6.5 percent a 4-year term costs $5,533 in interest. A 5-year term would lower the payment to $782.65 but raise interest to $6,959.

Should you put more down on a $40,000 car loan over 4 years?

A bigger down payment means borrowing less. On this $40,000 loan, putting down $4,000 more would lower the payment by about $94.86 and the interest by about $553. Sales tax, fees and insurance are not included.