How it works
The out-the-door price is the car price plus sales tax plus fees; subtract your down payment and trade-in to get the amount financed. The monthly payment is the standard loan payment for that amount at your APR over the term, and total interest is everything you pay minus what you borrowed. In the example, a $32,000 car with 7% sales tax and $900 of fees is $35,140 out the door; with $5,000 down, $30,140 is financed at 6.9%. Over 60 months that is $595.39 a month and $5,583.40 of interest. Stretching it to 72 months lowers the payment to $512.41 but raises the interest to $6,753.52; at 84 months it is $453.42 and $7,947.28, and after two years you would still owe $22,953 instead of $19,311. The car buying comparison spreadsheet puts up to three cars side by side, with fuel, insurance, maintenance and resale value.