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Your lender or financing company should provide you with an amortization schedule that breaks down how your payments are applied. Typically, a higher percentage of your payments will go toward interest and fees during the early part of your loan term. Once most of the interest is repaid, more of your payments will go toward the principal.## Total CostTotal cost is a simple car loan term that means the total amount you’ll pay for financing. This amount includes the principal, interest, fees, and any money you apply toward a down payment.***Recommended: Smarter Ways to Get a Car Loan***## The TakeawayAuto loans can vary, so it’s important to understand the terminology and to do your research before selecting one. When you’re comparing vehicle financing options, it’s a good idea to consider what different lenders offer in terms of interest rates, fees, repayment terms, and loan amounts.If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.*With SoFi’s marketplace, you can quickly shop and explore options to refinance your vehicle.*## FAQ### What is the typical term for a car loan?Car loan terms usually range from two to eight years, with five or six years being typical.### Are most car loans fixed-rate or variable?Most car loans are fixed-rate, but variable-rate loans may also be available. While a fixed-rate loan could end up being more expensive if rates drop, it can be helpful to have a consistent monthly payment when budgeting.### What is a car loan’s APR?A car loan’s APR is the annual percentage rate. This figure reflects the interest rate plus any other fees and loan costs. It more accurately reflects the cost of the loan than simply the interest rate.Photo credit: iStock/takasuuSoFi's marketplace is owned and operated by SoFi Lending Corp.