Home Add to Favorite Contact Submit  
             21 January, 2021

Category:  Articles » Finances » Loans


Car Loans Glossary

         Views: 1697
2010-03-04 05:45:44     
Article by Sarrah Lee

Before you go to the dealership, prepare yourself with the terms and language used by the lenders when you are applying for a car loan when you are purchasing your automobile. Here is a list of terms with their definitions and a reason each is important to you as the car buyer. It is important that you go into the car buying process as an informed buyer and attain as much knowledge as you can so you can get the best possible deal and not get taken advantage of.

Most potential car buyers cannot purchase an automobile without some type of car financing, and therefore they will need to apply for an auto loan. As with other types of loan, the car buyer will need to pay back the full cost of the car loan in addition to the interest payments. Banks and lenders want to ensure that loan applicants are able to afford and repay the loan, before they will approve an applicant. Before you apply for a loan with a bank, equip yourself with the following terms:

Down Payment
The down payment is the amount of money you can put down at the beginning of your car financing. It is recommended that if you can afford to put down a higher down payment, you will get a lower interest rate on the loan, and it also means that you will have to pay less in the long term.

The term is the length of the loan between yourself and the lender. Usually, terms are 36 months, 48 months, and 60 months, and sometimes even 72 months. However, keep in mind that the longer your term is, the less your monthly payments will be, but overall your entire loan will cost more than the cost of the car because you will be being interest longer.

Interest Rate
The interest rate for your auto loan is the 'fee' for borrowing money from the bank. The interest rate is determined by your credit history, how much down payment you can afford, and your employment history.

Annual Percentage Rate (APR)
The lower the APR you can qualify for, the better it will be financially. Different lenders offer various annual percentage rates, which includes the interest plus any fees that may be charged for your auto loan.

Monthly Payment
The monthly payment is the amount of money that you will need to pay the bank each month. This payment includes a monthly payment for the car, and a monthly payment of interest to the lender.

Specialized in: Auto Loans - Car Loans - Auto Loan - Car Loan - Auto Finance - Auto Financing - Car Finance - Car Financing - Auto Refinance - Auto Refinancing - Bad Credit Auto Loans
URL: http://www.carfinance.com
Print article      Bookmark this page
Related Articles 
What steps to be taken to avoid foreclosures? (Popularity: ): Avoiding foreclosures is not a mammoth task and can be done easily, forts by keeping your credit repayment for the house up to the mark and secondly by getting a credit refinances as well as taking the help of your bank.The downfall of the economy has resulted in one sad thing. The homeowners who had take credit to buy their own homes have got a realization that they would not ...
Online cash advance: Get Quick Cash Assistance for Emergency Needs with Ease (Popularity: ): If you want to attain quick financial relief without facing any complicated formalities then the provision of online cash advance proves to be quite beneficial for you. This short term financial plan helps you to obtain instant cash advance under emergency situations, which enable you to sort out your urgent monetary desires within due time. In this way, you can avail freedom from short term monetary strains efficiently on time. ...
Debt Consolidation Loan: Be free from your existing debt (Popularity: ): Its takes your soul out to consolidate your debt .Its not easy to get rigid of debt toll of debt causing you sleepless night and harrowing phone call of the lender cause stressful life the only way to get rigid of it is to go for debt consolidation loan. Debt consolidation loan is powerful financial tool as which act as protector as with the economy the way.Debt consolidation loan is ...
Types of Loan Modification (Popularity: ): The main purpose of loan modification is to make things easier for the loan taker to pay his repayments. Sometimes after an individual takes out a loan, due to unforeseen circumstances he would be struggling to make the repayments and in this situation, instead of closing down the loan as a whole, one can always go for loan modification. This process usually consists of modifying or adjusting the conditions of ...
Financial Planning for Families (Popularity: ): For many families, one of the most controversial subjects is financial planning as it seems that money coming in is not really equal to money going out. It appears that much more money is getting spent as compared what is gained by families. Every family should take charge of the finances with efficient planning while eliminating poor spending techniques. One way to enhance financial standing of your family is by ...

Related Business 
Payday Loans (Popularity: ): Need Loans bring to you a wide variety of loans for all purposes like payday loans, unsecured loans, bad credit loans, cosmetic surgery loans, same day loans, logbook loans, cash loans, debit card loans, no credit check loans, business loans, loans for unemployed, quick loans and car loans without any hassle. Apply now today to meet your urgent needs conveniently.
Sacramento Car Title Loans (Popularity: ): Sacramento Car Title Loans was established in 1994 and has grown to become the most respected car title loan lender in the state of California. The products the company offers include car title loans, automobile title loans, collateral loans, and pink slip loans.
Car Loans in Canada (Popularity: ): TREND Financial offers a wider Range of Canada Car Loans for Bad Credit as well as Specialty Vehicles, with Multiple Lending Tiers for Bankruptcy, Bad Credit Car Loans, Poor Credit and No Credit Car Loans, with Better Rates and Affordable Payments. Special programs are also available for new Immigrant Car Loans, Students and Work Visas holders and Used Car Loans. See our exclusive Buy-Up Program for lower interest rates and ...
Car Loan (Popularity: ): 123 Car Finance for the Best Car Finance Loans including Guaranteed, Bad Credit, Poor Credit, Cheap, New, Used, Low Rate, Subprime & Instant Car Loans to Compare Car Loans with Car Credit, Car Loan Rates & Quotes with our Car Finance Calculator.
Utah Car Title Loans (Popularity: ): Utah Car Title Loans provides fast, convenient solutions for financial emergencies with a variety of loan options. Our automobile title loans, car title loans, pink slip loans, and collateral loans have helped people to overcome short-term financial obstacles while re-establishing their credit.
Car Finance, Car Loans, Australia (Popularity: ): Swift, low cost car finance solutions in Australia. Car finance broker Get approved helps in arranging online car finance, business car loans, equipment loans, property loans and broad range of online insurance solutions.
Loans Arena (Popularity: ): Loans Arena is one of the leading online loan arranger bodies in the USA. We offer a variety of loans as per the borrowers' desires and needs. Loans are included Personal loans, Payday Loans, Cash Loans, Bad Credit Loans, Unsecured Loans, Unemployed Loans, Car Loans, Business Loans, Tenant Loans and all that. Every loan, which we arrange is cost-effective with affordable interest rate and comes with flexible terms and conditions ...
SS Personal Loans (Popularity: ): SS Loans are your local Personal Loans and Car Loans specialists. Servicing Australia wide Burleigh, Palm Beach, Currumbin and Robina. We also provide home loans, boat loans, medical loans and many more specialized loans.
Car Title Loans California (Popularity: ): Great rates on car title loans and auto title loans in California. Fast cash when you need it the most. Find automobile title loans, car title loan, pink slip loans and auto title loans in California, Orange County, Santa Monica, Los Angeles, Pasadena, Ventura, Palmdale, Anaheim and Sacramento.
South Carolina Car Title Loans (Popularity: ): Being an established title loan lender allows Carolina Car Title Loans a unique opportunity to serve our customers in South Carolina with secure and affordable car title loans, pink slip loans, automobile title loans, and collateral loans.