How does the interest rate on an auto loan impact the monthly payment?

The interest rate on an auto loan has a direct impact on the monthly payment. A higher interest rate means a higher monthly payment, while a lower interest rate means a lower monthly payment. This is because the interest is calculated as a percentage of the total loan amount and is added to the principal amount, which is then divided over the loan term. The higher the interest rate, the more you'll pay in interest over the life of the loan, and the higher your monthly payments will be. On the other hand, a lower interest rate means less interest paid over the life of the loan, and lower monthly payments.