SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/longer-car-loan-more-interest

A 6-year car loan has lower monthly payments than a 3-year loan. What's the catch?

You pay more interest in total.

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Just rightCompare the total cost, not just the payment

Huh, didn't know that: When comparing loans, look at the APR, the loan length and the total amount financed, not just the payment.

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References

Answer: You pay more interest overall. A longer loan shrinks each payment but adds years of interest. In a CFPB example, a $20,000 loan cost $1,498 in interest over 3 years and $3,024 over 6.

  1. CFPB: How do I compare auto loan offers? www.consumerfinance.gov/ask-cfpb/how-do-i-compare-auto-loan-offers-what-should-i-look-at-besides-the-monthly-payment-en-753
    a longer loan term may mean smaller monthly payments, but you’ll ultimately pay more in interest over the life of the loan.
    Checked 2026-10-09.

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That's stuff everyone should know.