Are auto loans front loaded with interest?

The majority of auto loans are amortized meaning that your payments, in the beginning, are going mostly to interest. For example, a six-year, $20,000 loan with a 4% interest rate has a monthly payment of $312.90. 21.3% of the first payment goes to interest. Three years in, 11.6% of your payment goes to interest. The last payment you make will be 0.3% interest.

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