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

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If you’re looking to buy a new car, you’re probably going to finance a large part of it unless you’ve saved a bundle for a down payment. According to The Guardian, auto loans rank as the third-largest form of consumer credit in the U.S., following mortgages and student loans and make up 85% of all new car purchases.

Before you put the pedal to the test model metal, you’ll need to figure out factors like the amount you can put toward a down payment, what you can get on a trade-in and the state tax you’ll pay. And, of course, you’ll need to factor in the interest rate you’re going pay or the cost of borrowing money, expressed as a percentage of the remaining loan balance.

Below is what you might pay in interest for some popular car models on five-to-seven-year loans, stripped of all down payment, trade-in, state sales tax and title and registration fees and using base model manufacturer’s suggested retail price (MSRPs).

Also here’s what you need to finance a car.

What Is a 5-to-7-Year Car Loan Really Costing You?

Saving up to pay for a new-to-you car with cash is an ideal scenario; you’ll avoid borrowing and the possibility of falling into loan delinquency. However, that’s a luxury many can’t afford. Interest charged by your lender will be based on your credit score, but comparison purposes, here’s what you’ll pay in interest for four popular new vehicles over five to seven years, using the average annual percentage rate (APR) for October 2025 of 6.9% per Edmunds.

Ford F-150

• 2025 Base Model MSRP: $40,045
  • Monthly payment/total interest paid on a five-year loan: $791.05/$7,418.06
  • Monthly payment/total interest paid on a six-year loan: $680.81/$8,973.05
  • Monthly payment/total interest paid on a seven-year loan: $602.43/$10,559.18

According to Car and Driver, the F-Series truck has sold 597,546 units this year (as of the end of September 2025), which is easily the most of any model. This should come as no surprise; the F-150 was historically the best-selling vehicle for decades until Toyota’s RAV4 surpassed it in 2024. A base XL will cost you $40,045, but the King Ranch trim will set you back almost double that ($74,095).

Tesla Model Y

• 2025 Base Model MSRP: $46,630
  • Monthly payment/total interest paid on a five-year loan: $921.13/$8,637.89
  • Monthly payment/total interest paid on a six-year loan: $792.76/$10,448.57
  • Monthly payment/total interest paid on a seven-year loan: $701.49/$12,295.53

According to estimates (Tesla doesn’t report sales like other automakers do), Model Y sales were down 20% in the third quarter of 2025 and down 23% year-to-date, per Car and Driver. Regardless, the Y is still the most popular electric vehicle in America.

Nissan Sentra

• 2025 Base Model MSRP: $22,785
  • Monthly payment/total interest paid on a five-year loan: $450.10/$4,220.76
  • Monthly payment/total interest paid on a six-year loan: $387.37/$5,105.53
  • Monthly payment/total interest paid on a seven-year loan: $342.77/$6,008.01

If you want a capable, comfortable compact car at a nice price point, the Nissan Sentra is an excellent option. According to Edmunds, It’s become It received some cosmetic updates for 2024, as well as an improved transmission. The Sentra has quietly become Nissan’s best-selling sedan.

Toyota Camry

• 2025 Base Model MSRP: $29,895
  • Monthly payment/total interest paid on a five-year loan: $590.55/$5,537.84
  • Monthly payment/total interest paid on a six-year loan: $508.25/$6,698.69
  • Monthly payment/total interest paid on a seven-year loan: $449.74/$7,882.80

There are sedans and then there is the Camry, which outsells Toyota’s equally excellent Corolla and Honda’s Accord and Civic every year. No one beats Toyota for reliability (and I’m not just saying this because I drive a 15-year-old Matrix!) and the Camry is a no-brainer daily driver option for many Americans.

Editor’s note: All MSRP data was sourced from Car and Driver.

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