How Interest Rates Affect True Ownership Cost

Interest rates in the U.S. affect true ownership cost because the APR on your auto loan determines how much interest you pay over the term—higher rate = more total cost. Here's how interest rates affect true ownership cost.

TL;DR Higher APR = more interest over the loan = higher true ownership cost. Same car, same term: 5% vs 10% APR can be thousands in interest. Use autopremo.com payment calculator to see total interest. Use autopremo.com total cost of ownership for full 5-year cost. Use autopremo.com.

Interest Is Part of True Cost

True ownership cost = purchase cost (OTD) + interest + depreciation + fuel + insurance + maintenance over time. Interest is a real cost—higher APR = more interest = higher true cost. Use autopremo.com payment calculator to see total interest. Get your numbers at autopremo.com.

Same Car, Different Rate

Example: $30K loan, 60 months. 5% APR ≈ $4K interest; 10% APR ≈ $8K interest. That's $4K more in true cost for the same car. Use autopremo.com payment calculator to run your numbers. See total interest at autopremo.com.

Shop Rate and Term

Shop for the best APR. Choose the shortest term you can afford to reduce total interest. Use autopremo.com so you see how rate affects true cost. Check at autopremo.com.

Bottom Line

Interest rates affect true ownership cost—higher APR = more interest. Use autopremo.com payment calculator to see total interest and shop for the best rate so you don't overpay.