Understanding Auto Loans
The principal amount, the interest rate, and the loan term. The principal amount is the total amount borrowed to purchase the vehicle. The interest rate is the cost of borrowing the money from the lender and is expressed as a percentage of the principal amount. The loan term is the length of time over which the loan will be repaid, typically ranging from 2 to 7 years.
When shopping for a car loan, it's important to consider the interest rate, as a higher interest rate will result in higher monthly payments and a higher overall cost of the loan. You should also look at the loan term and make sure it aligns with your financial goals and budget. A longer loan term may result in lower monthly payments, but a higher overall cost of the loan due to the added interest.
At Flexcar Financial, we work with a variety of lenders to offer you the best possible interest rate and loan term for your unique financial situation. Our team of experienced loan specialists is dedicated to helping you find the right car loan that fits your needs and budget. So, if you're in the market for a new vehicle, let us help you take the stress out of finding a car loan and get you behind the wheel of your dream car.
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
The length of time that payments will be made for. Typically, terms will run anywhere between 36 months and 72 months (shorter or longer terms are sometimes possible).
Interest Rate
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.
Credit problems? Have you been turned down for a car loan?
We can help get you approved for a car loan regardless of your credit history. An Auto Loan is a new generation of credit building that allows Canadians to establish a positive payment history while you save money. Feel free to contact us about a free credit consultation with one of our credit specialists to help you further understand how to improve your credit with an Auto Loan.
