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Get a sense of how changes in the different factors change the monthly loan payment. Understanding how the different parts of an auto loan work together will be a great help when you negotiate with the dealership or the bank for funding. Also remember that lower is not always better. For instance, if you take out a loan for $15,000 with 10 percent interest and a three year term, you will pay $484 a month, and the total cost of the loan will be $17,424. Extending the same loan to five years will reduce your monthly payments to just $319, but you will pay $19,140 in total.