Car loan guides

Answers to the questions that come up when you finance a car, with worked examples from the same math the calculators use.

• How Auto Loan Interest WorksWhy early payments are mostly interest, how APR and loan length change what you pay, and how extra payments cut interest.
• Is a 72- or 84-Month Car Loan a Bad Idea?What a longer car loan saves you each month, what it costs in total interest, and the negative-equity risk that comes with it.
• How Much Should You Put Down on a Car?How 0%, 10% and 20% down change your payment, interest and loan balance, and when a smaller down payment makes sense.
• Does a Trade-In Lower Your Sales Tax?Most states tax only the difference after a trade-in, but several don’t. The states that differ, with worked examples.
• How Much Car Can I Afford?The 20/4/10 rule explained with real numbers, plus how loan length and other car costs change what your income supports.
• When Does Refinancing a Car Loan Make Sense?How to tell whether a refinance saves money: rate drop, fees, break-even month, and the trap of stretching the loan.