Remember, there are typically other fees and costs related to auto loans that are important to factor in when shopping around. Here’s a breakdown of them.

Interest rate

The interest rate is the most obvious cost but it’s worth thinking about when you purchase a loan. It helps fund the auto loan itself and is expressed as a certain percentage of the entire loan.

Typically, the more you put down, the lower the interest rate tends to be. As mentioned above, shorter loan terms typically have lower interest rates but higher monthly installments. Interest rates are also determined by other factors, like your vehicle’s age and your debt-to-income ratio – which is the amount you owe divided by how much your gross income.

Annual percentage rate (APR)

The APR includes the interest rate plus other include fees, says the CFPB. The interest rate and APR can greatly affect the price you pay for getting a loan. APR and interest are two important measures of how much you’ll pay on a loan. All lenders are required to show you the APR before you commit to the loan, which you can use to shop around and find the best deal.

Vehicle registration fees

Every state requires vehicles to be registered with the department of motor vehicles – or transportation agency, says the National Conference of State Legislatures (NCSL). How fees related to the registration processed are determined vary from state to state.

The dealership may handle the registration process themselves, then simply charge you the related costs, adds Car and Driver. Fees may also be determined in part by your vehicle’s value.

Gap insurance

Many auto loan lenders require drivers to carry gap insurance. It helps cover the difference between what you owe and what the vehicle is worth at the time of an accident. That way, the lender is protected from financial loss.

Most insurance companies require you to also carry comprehensive and collision coverage. These help cover your vehicle from an array of hazards regardless of fault.

How much these insurance coverages cost depends on many factors – including but not limited to your vehicle, where you live, how much coverage you choose and your driving history. However, once you’ve paid off your car, you can drop gap insurance.

State sales tax

Most state require dealerships to pay a sales tax for each purchased vehicle, says Kelley Blue Book. But ultimately, they’ll add the cost of sales tax to the vehicle purchase.

Sales taxes vary by state but may take up a decent percentage of the purchase, according to Car and Driver. Trade-ins, however, may be able to help off-set the price of a new vehicle purchase.

Warranties

Dealerships sometimes bake warranty costs into the overall costs, according to Car and Driver. Warranties may cover tire, wheels, powertrains and more. You don’t necessarily have to accept these extra costs – you just need to weigh the pros and cons of including a warranty fee. Alternatives to warranties may be having your own “rainy day” fund to cover maintenance costs.

Some fees may be negotiable, according to the CFPB, and could save you hundreds or even thousands of dollars. Negotiable terms and conditions may include:

Loan terms
Prepayment penalties
Alarm systems
Window tinting
Certain warranties mentioned above

Knowing what these terms and conditions are can give you bargaining power when you shop around, adds the CFPB. It also helps to negotiate terms individually – for instance, negotiating the price with the dealer but getting better loan terms through a bank.

Note that you can’t negotiate terms and fees required by your local and state government – including taxes, title and registration costs.