Understanding the auto loan calculator
An auto loan is a simple amortized loan, but the amount financed is more than the sticker price: sales tax and title fees are usually rolled in, while the down payment and any trade-in value come off the top. In most U.S. states a trade-in also reduces the taxable amount, which is why trading in can beat selling privately by more than the price difference suggests.
Longer terms are the industry's favorite way to make expensive cars feel affordable. Stretching from 60 to 84 months cuts the payment but raises total interest substantially, and it lengthens the period when you owe more than the car is worth. A useful discipline is to pick the term first ideally 60 months or less and let that decide the car, not the other way around.
Results are estimates for education only and are not financial advice.