Understanding your calculation
Method, example and limitations
How the calculation works
Auto-loan payments depend on the financed principal, interest rate and term. The financed amount may include taxes and fees and may be reduced by down payment or trade-in credit.
Example to check
At 0% interest, financing $12,000 for 24 monthly payments gives $500 per month before any additional charges.
Before using the result
Verify whether taxes, fees and trade-in loan balances are included. A low monthly payment can reflect a longer term and higher overall interest cost.