@ nazeef

in the chart of accounts create:
fixed asset car
sub fixed asset account car accumulated depreciation
loan liability account car

and if you do not have depreciation on any other assets, create an expense account called depreciation expense

open the register for the loan account you created and make a new entry as an increase in the amount of 4,000 and use the fixed asset car account in the account block

write a check on the bank you paid the down payment from and use the fixed asset car as the expense for the check, enter the amount 1,000

You make payments to the loan using the loan account as the expense for the payment, when you get next months statement in, it will show the amount of the previous payment that was interest, do a journal entry back dated

debit interest expense for the amount shown on the statement
credit loan liability account

annually you calculate and post accumulated depreciation using a journal entry
debit depreciation expense
credit car accumulated depreciation