Practical ways to cut the cost of an auto loan, from term length to down payments and pre-approval.
Focus on the total price
Dealers often discuss the monthly payment. Ask for the full price, tax, fees, APR and term in writing so you can see the whole cost.
Choose a shorter term
A $29,920 loan at 7% costs about $592 a month over 60 months, with roughly $5,630 of interest. Longer terms lower the payment but raise interest and can leave you owing more than the car is worth.
Increase your down payment
A bigger deposit reduces the amount you borrow and may help you qualify for a better rate. It also lowers the risk of negative equity.
Get pre-approved
Ask your bank or credit union for an estimated rate before visiting a dealer. It gives you something to compare against dealer financing.
Be careful with add-ons
Extended warranties, gap cover and other extras are sometimes rolled into the loan. Decide whether they are worth the cost before you sign.
Run the numbers
The auto loan calculator includes tax, down payment and trade-in.
General information only, not financial, credit or legal advice. We do not offer or arrange loans. Rules and rates differ by country and lender.