Auto Financing Explained

To get the best car financing offer, you should select a vehicle that fits your budget and provide as much down payment as possible. These two factors alone may increase your likelihood of approval, could improve your offer, and will reduce your monthly payment.

Four main factors determine how creditors decide to give you a car financing offer

  1. Vehicle selection: cost, age, and mileage
  2. Application information: employment, residence, and income information
  3. Credit history: information contained in your credit file
  4. Down payment: total of cash and trade equity

To get the best car financing offer, you should select a vehicle that fits your budget and then provide as much down payment as possible. These two factors alone may increase your likelihood of approval, improve your offer, and reduce your monthly payment.

Factors affecting your monthly payment

Your monthly payment is determined by three major factors listed below in order of impact:

  1. Amount financed
  2. Term or length of contract
  3. Annual Percentage Rate (APR)

The Benefits of Financing

  • Competitive interest rates
  • Flexible terms
  • No mileage restrictions
  • No fees for early payout
  • Freedom to customize vehicle