For a successful purchase, you have got to get several things right: choose the right car, get a good price, and fund the purchase in the most affordable way. If you are going to borrow for your purchase, the choices you make on your auto loan are extremely important. An auto loan helps you buy a car that costs more than you can afford with cash. Unless you have a substantial amount in savings, you will probably borrow and pay off your vehicle with flat monthly payments. Start planning for your loan long before you ever start looking at cars. Getting your ducks in a row ahead of time improves the chances that you will get a loan (and a car) that fits with your lifestyle. Plus, when its time to make a deal, you will be ready to proceed with confidence. An auto loan typically has a length of three to seven years, or 36 to 84 months. A longer-term loan typically has a lower monthly payment than a shorter-term loan, but you pay more money in finance charges over the life of a longer-term loan. For example, you might have a 500rs monthly payment on a 36-month loan or a 300rs payment on a 60-month loan, but the 60-month loan will cost more in interest over the life of the loan. The interest rate is the annual percentage cost a lender charges you to borrow money for an auto loan. For example, if you borrow 1,000 for one year with a 5 percent interest rate, you would pay 50rs in interest. A lender typically quotes an interest rate as an annual percentage rate, or APR, which is the cost to borrow money including extra charges and fees. A borrower with good employment and credit history typically qualifies for a lower interest rate, which results in a lower payment.