How do Car Loans Work?
When you purchase a used car, it typically means you will need to take a car loan. It doesn’t matter if you have bad credit or good credit—all car loans have these three factors.
- The Loan Amount
- The Annual Percentage Rate
- The Loan Term
Let’s break down these three factors one by one.
What is the Loan Amount when Financing a Car Loan
The Loan amount is different than the sticker price and it can even be less than the value of the car. The loan amount is adjusted after factoring in trade-ins or down payments. For example, generally speaking if you are considering a $10,000 loan and able to make a $2,000 down payment, then your loan amount is $8,000.
What is The Annual Percentage Rate for a Car Loan
This is basically the fee for the loan. Loans are not free, they come at a cost in the form of a percentage rate.
Find The Right Vehicle For The Right Price Today With Bickmore Auto
Bickmore Auto is eager to help you find the vehicle of your dream. With the aid of our knowledgeable finance staff, the process of purchasing your used vehicle is easy. Don’t wait! Apply now to get a quote. Our staff will contact you as soon as possible to let you know about our available finance options.