Car Loan Guide
A few basics make it much easier to compare offers and avoid surprises at the dealership.
1. Start with the out-the-door price
Add sales tax, dealer and registration fees to the vehicle price, then subtract rebates, your down payment and trade-in value. That is roughly what you'll finance.
2. Watch the trade-in equity
If you owe more on your trade than it's worth, that negative equity gets rolled into the new loan and you pay interest on it.
3. Compare APR, not just the monthly payment
Stretching a loan to 72 or 84 months lowers the payment but usually costs more interest overall. Compare total interest across terms.
4. Consider extra principal
Even a small extra amount each month shortens the loan and cuts total interest. Confirm your lender applies extra payments to principal.