How do I record the principle and Interest for a vehicle purchase?

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If you purchased the vehicle with 100% financing, ie a note then the journal entry will be:
debit vechile for the cost
Credit Note payable for the cost.

If you put a down payment on the vehicle then the journal entry is:
Debit vehicle for the cost
credit cash for the amount paid
credit the note payable for face amoun of the note.

When interest is paid you journalize the entry as follows
Debit interest expense
credit cash

If you are doing adjusting entries for the financial statements then the journal entry is:
Debit Interest Expense
Credit Interest Payable

To compute the interest you use the following formula:
Interest = Principle(note) * Rate(APR) * Time/(360 or 365 or 12)

If you are computing the interest for days outstanding you use the days/360 or 365
If you are comlputing the interest for months then you use # of months/12

for example you purchase a vehicle with a $20,000 note for for 1 year with an apr 12% dated Jan Jun 1.

The entry to record the purchase at Jun 1 is as follows:
Debit vehicle for 20,000
credit Note Payable for 20,000

At end of year to compute the interest you have to figure the amount of interest due
20,000 * 12% *7/12 = Interest due
20,000 is Principle 12% is the APR 7/12 is months outdatnding
Interest due is $1,400

the journal entry to record the interest due at the end of the year is as follows:
Debit Interest Expense for 1,400
Credit Interest Payable for 1,400

When the Interest is paid in Jun the following year the journal entry is as follows;
debit interest Expens for 1,000 (5 more months outstanding loan)
debit Interest payable for 1,400
credit cash for 2,400