Tomorrow: borrowing $8,000 for two years. What does it cost right now?
Shares the question and how far off you were (your miss). Never your own numbers.
The whole story, as text
60 months or 72? What the extra year costs.
$40,000. 60 months at 7.14%, or 72 months at 6.97%? The latest Fed-reported average bank rate for each term. The 72-month loan has the lower rate and the lower payment. How much more interest does the 72-month loan cost in total?
The answer
$1,378. $9,060 over 72 months against $7,682 over 60. A lower rate for longer still costs more.
Why
Twelve extra months of interest outweigh a slightly lower rate. $232 interest, $449 pays for the car. $232 of the first $681 is interest, and the balance stays high for a year longer.
One move
The payment gap is $113 a month. 60 months: $795 a month, $7,682 interest in all. 72 months: $681 a month, $9,060 interest in all. $113 more a month for five years buys $1,378 less interest, and a car that is paid off a year sooner. Average rates. Your two quotes will differ, and the tool takes either.
Longer terms are sold on the payment. The total is what the payment hides.
Written and reviewed by Riverbend Crossroads Digital LLC, Friday, October 2, 2026. Figures from the Show Real Cost engine, computed exactly and shown to the cent. Educational, not advice; your lender's disclosures are the authoritative figures. How we calculate · Corrections.