Interest Rate
%
Loan Term
1 year (12 months)
2 year (24 months)
3 year (36 months)
4 year (48 months)
5 year (60 months)
6 years (72 months)
7 years (84 months)
8 years (96 months)
9 years (108 months)
10 years (120 months)
12 years (144 months)
Purchase Price
$
Down Payment
$
Monthly Payment
Definitions and Explanations
Interest Rate:
The periodic charge, expressed as a percentage, for the use of credit.
Loan Term:
The length of time that it will take to repay the loan. Typical loan terms are 60 to 180 months. Other terms may be available. Term length has a larger impact on the monthly payment and the final amount repaid than interest rates.
Purchase price:
The amount of money agreed upon by both parties as the value of the item for sale.
Down Payment:
The up-front cash payment that the buyer makes to reduce the amount borrowed to purchase a vehicle; the difference between the loan amount and the purchase price. A rebate also may be used as part of down payment. The down payment helps protect the bank, credit union or finance company in case the borrower defaults on the loan. A typical down payment is about 33 percent of the vehicle’s sale price.