Understanding the car loan process.
The Process of Finding a Car Loan Doesn’t Have to Be Confusing or Stressful
Payments on car loans are calculated using these factors:
Principal
The total cost of a vehicle including any fees that the lender or dealership may have for the car loan and any options or add-ons you choose.
Term
How much time that payments will be made for. Typically terms run anywhere between 36 Months to 48 months (Shorter or longer terms are sometimes possible).
Interest Rates
The percentage that the lender is charging for you to borrow money. Interest rates can vary depending on whether the vehicle and the risk the lender perceives in lending the loan.