Car financing, explained without the jargon
Term length, interest rate, down payment and total cost of borrowing — a plain-language guide to financing a used car with DPATTOS.
Two numbers drive your payment
The amount you finance and the rate you are charged decide most of your payment; the term decides how long you are paying. Extend the term and the payment looks smaller, but the total interest climbs — sometimes by thousands.
Your down payment buys you two things
A larger down payment lowers the financed amount and the payment, and it gives you more equity in the car. Putting money down is not about looking better at signing — it is about owning more of the vehicle from day one.
Longer terms suit longer ownership
A five or six year loan on a vehicle you will keep five years keeps your options open. A longer term on a car you plan to sell soon can leave you underwater, so match the term to how long you expect to drive it.
Run the numbers before you fall for the payment
Use our loan calculator to see the payment, the total interest, and the total paid — then compare that total to the price of the car. If the number is higher than the vehicle is worth, the payment was never the real price.
More from the blog
Advice
Ownership, mileage, repair risk and resale value compared side by side, so you can decide whether buying your next used...
Read more
Sell or trade
Book value, private-sale value and trade-in value are not the same thing. Learn the difference before you accept an offe...
Read more
Vehicle checks
Not every inspection is the same. Learn what a proper multi-point inspection covers, what the report should include, and...
Read more
Need help financing
your next car?
Alongside retail and wholesale sales, we offer vehicle financing to help you get behind the wheel. Estimate your monthly payments with our calculator, then talk to us about the options.
Financing available on our vehicles
Free online payment estimator
Honest answers, no pressure
Estimate Your Payments
Know your monthly budget before you visit.
Adjust price, down payment, term, and rate to see what fits — takes less than a minute.
Open Calculator