This is for informative and educational purpose only; the information provided does not include additional fees/charges that might be pertinent to your loan.
Before borrowing money for a car, you need to truly understand the factors that determine your monthly auto payment. You need to factor in the auto loan amount, down payment, monthly payments, and the term of loan. Before saying yes to a financing option, always calculate the cost and negotiate a good price.
This is a payment you must pay up front when making an auto purchase. The amount you put down will determine your monthly payments. If you put down a larger amount of down payment, your loan amount will also be smaller.
Your monthly payments are your regular payments for the duration of the loan. Try as much as possible to keep the monthly amount low because of unexpected events that could influence your income.
This is the length of time over which you will pay back the auto loan. A short-term loan which ranges from 36 to 48 months is a better option because it lowers your interest rate over the term of the loan. A long-term auto loan ranges from 72 to 84 months. The advantage of this loan option is that reduces your monthly payments. The disadvantage is that it increases your interest rate over the term of the loan.
