If You’re Financing a Car for More Than 5 Years, Here’s What It’s Really Costing You

Core Insights - Auto loans are the third-largest form of consumer credit in the U.S., making up 85% of all new car purchases [1] Financing Considerations - Factors to consider when financing a car include down payment, trade-in value, state tax, and interest rates [2] - The average annual percentage rate (APR) for car loans in October 2025 is projected to be 6.9% [4] Cost of Car Loans - Monthly payments and total interest paid for popular car models over five to seven years are detailed, highlighting the financial implications of auto loans [3][4] - For the Ford F-150, the base model MSRP is $40,045, with varying costs for different trims [6] - The Tesla Model Y has a base model MSRP of $46,630, with specific monthly payments and total interest outlined for different loan terms [8][9]