Your monthly payment is calculated using the loan amount, the loan rate, and the number of months until the loan expires. The monthly payment is an auto loan’s most important metric because it indicates whether the subprime borrower can afford the loan — that is, can repay the full amount each month, on time. When considering the repayment terms of an auto loan, it’s a good idea to play around with a payment calculator. You first enter the car’s price, your down payment, the amount of the loan, and loan term. Then, you can put in various APRs to calculate how much you’ll pay each month. This is a good way to match your loan terms to your budget. If you find that the monthly payment breaks your budget, consider making a change: Increase the number of months. Decrease the loan amount. Shop for a lower interest rate. Save up a larger down payment. Improve your bad credit score to become eligible for better terms. Select a cheaper car. Buy used rather than new. Use a payment calculator to model different scenarios until you find one that fits your budget. Note that the loan is due in equal installments, making it less flexible than an unsecured or secured credit card, where you only need to make the minimum payment each month and the credit limit is relatively small.