$40,000 Auto Loan Payment Over 5 Years

Questions about this calculator

Is 5 years the right length for a $40,000 car loan?

It depends on the monthly payment you can carry. At 7 percent this term costs $792.05 a month. A 7-year term would cost $603.71 a month and $10,711 in interest, compared with $7,523 over 5 years.

Does adding a year to a $40,000 car loan over 5 years change the cost much?

Yes. At 7 percent a 5-year term costs $7,523 in interest. A 6-year term would lower the payment to $681.96 but raise interest to $9,101.

Should you put more down on a $40,000 car loan over 5 years?

A bigger down payment means borrowing less. On this $40,000 loan, putting down $4,000 more would lower the payment by about $79.20 and the interest by about $752. Sales tax, fees and insurance are not included.

What if the rate on a $40,000 car loan over 5 years were one point higher?

The payment would rise from $792.05 to $811.06, which is $19.01 more each month. One point lower would give $773.31.