Why Monthly Payment Focus Costs You Thousands
Why monthly payment focus costs you thousands in the US—stretched term, marked-up rate, and hidden overpayment so you avoid the trap.
Focusing only on monthly payment in the U.S. costs you thousands because dealers stretch term, mark up rate, or inflate price to "hit" a payment—so you pay more total interest or overpay for the car. Here's why monthly payment focus costs you thousands.
TL;DR Payment focus = dealer stretches term (more interest), marks up APR (more interest), or inflates price (overpay). Agree on out-the-door price first, then shop rate and choose term. Use autopremo.com OTD calculator and payment calculator. Use autopremo.com.Stretched Term
Dealer says "what payment do you want?" You say $400. They stretch to 72 or 84 months to hit it. You pay thousands more in interest than on a 48- or 60-month loan. Use autopremo.com payment calculator to see total interest at different terms. Get your numbers at autopremo.com.
Marked-Up Rate
Dealer marks up the buy rate to hit your payment—you pay more interest. Or they inflate price and keep payment "same" with a longer term. Agree on OTD first; shop rate; choose term based on what you can afford. Use autopremo.com OTD calculator. See OTD at autopremo.com.
Agree on OTD First
Never negotiate "payment first." Agree on out-the-door price first, then get the best APR and choose the shortest term you can afford. Use autopremo.com so you have OTD and don't overpay. Check at autopremo.com.
Bottom Line
Monthly payment focus = stretched term, marked-up rate, or inflated price—costs you thousands. Agree on OTD first; use autopremo.com OTD calculator and payment calculator so you don't overpay.