The reason that car loans behave this way is that monthly payments at the beginning of a car loan
include more interest charge than the payments at the end of a car loan.
These payments are over $ 100 less than your previous loan's payments; however, in the end, you will pay more for your car because you will
pay more interest charges.
In keeping with how car loans are structured, you will
pay more interest charges and prepaid finance charges near the beginning of your loan than near its end.
However, because of the way car loan interest works, the more months over which you pay for your car,
the more interest charges you pay for with your payments.
If you do not, you may incur additional late fees or
more interest charges — and you also risk losing your car.
For example, you may incur late fees or
more interest charges.
However, generally speaking, the longer your car loan term length,
the more interest charge you will pay in total over the course of your loan.
Be prepared beforehand to pay
more interest charges and not to enjoy as many perks as cards that are advertised for those with good credit.
The longer the loan the term, the lower the payment would be but
the more the interest charges would add up.
If there were
no more interest charged, then 40 months worth of payments and the debt would be paid off.
Generally speaking, the longer the repayment period
the more interest charged, however this still reduces the amount you pay per month as the total amount borrowed is more spread out.