Compare the same car side by side.
Change the deal assumptions and watch the payment and interest tradeoff update.
$6,670 total interest
$8,075 total interest
$1,405 more interest with 72 months
Why the 72-month payment is lower
With the same amount financed and APR, a 72-month loan spreads repayment across twelve more monthly payments than a 60-month loan. That typically reduces the required monthly payment.
Why the interest can be higher
The balance remains outstanding for longer. Even though each payment may be smaller, interest has more time to accrue across the loan's life. The comparison tool above keeps the price, down payment and APR constant so you can isolate the effect of the term.
Look at monthly payment, total interest and how long you expect to keep the vehicle. A lower payment is useful cash-flow information, but it is not the same thing as a lower total cost.
What about 84 months?
The full BeyondSticker calculator also compares 48, 60, 72 and 84 months using the same deal assumptions, so you can see the payment and interest ladder together.