Auto Loans
An auto loan is a loan taken out to purchase an automobile. The amount of the car loan that is being financed is referred to as the principal, and it does not include the interest charged on the auto loan. Interest rates are calculated annually for all car loans. The loan term is the length of the loan which is calculated in monthly periods. In most cases, a longer loan term will result in higher interest rates.
When purchasing a car, an auto loan calculator comes in handy as it enables you determine the price of car you are able to afford, as well as your monthly auto loan payments. All you need to do when using the auto loan calculator is enter your information, then use the graph options which will enable you to see the impact of different loan terms and down payments on your monthly payments.
Spotlight on Auto Loans
Refinancing a Car Loan
When it comes to refinancing a car loan in Canada, an upside down car loan is the most common reason for having to refinance. When a car buyer is taken advantage of by a car lot and ends up paying more for the auto loan than the car is worth, this is called an upside down car loan.
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How to Get a Low Interest Auto Loan
While getting any auto loan is a hard task in today’s economy, the question of how to get a low interest auto loan is an even tougher one to figure out. Auto loans are not any more difficult to get du...
Refinancing a Car Loan
When it comes to refinancing a car loan in Canada, an upside down car loan is the most common reason for having to refinance. When a car buyer is taken advantage of by a car lot and ends up paying more ...
About Auto Loans
Some of the terms you will see during your auto loan application include:
- total purchase price—before tax: the total cost of your auto purchase, comprising the cost of the vehicle, as well as any additional options and destination charges
- cash down: the total amount of cash which will go into the purchase of the automobile. The larger your cash down payment, the smaller the loan required for the financing of the vehicle purchase.
- trade allowance: the total amount that the buyer receives for any automobile that they trade-in as part of this automobile purchase
- amount owed on trade: the total loan balance that remains outstanding on the trade-in
- sales tax rate: the sales tax percentage rates charged on the purchase of the car
Many people who want to apply for an auto loan may fear to do so because of bad credit history or a negative credit rating. The credit history of a consumer is regularly tracked by credit rating agencies through data which is provided by creditors. This data includes detailed records of the relationship between an individual borrower and lender, such as payment history, high and low balances, credit limits, as well as any aggressive actions which have been taken for the recovery of overdue debts. The good news, however, is that it is still possible to obtain a car loan even with a poor credit history.