01/04/2016
Ever wonder what factors play a role in determining your payment and interest rate when applying for an auto loan?
At EasyCar, we pride ourselves on transparency throughout the car buying process, including the financing process. To this end, we've gathered information to help you understand how creditors make decisions resulting in your financing offer. These decisions are based on four main factors:
Vehicle selection: cost, age, and mileage
Application information: employment, residence, and income information
Credit history: information contained in your credit file
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 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.
Factors directly affecting your monthly payment:
Your car financing monthly payment is determined by three major factors listed below in order of impact:
Amount financed
Term or length of contract
Annual Percentage Rate (APR)
Amount Financed: $17,500
APR: 10.00%
Term: 60 months
$17,500 60 10.00% $372 Base example
$15,750 60 10.00% $335 Lowering the amount financed by 10% = 10% payment decrease
$17,500 66 10.00% $346 A 10% longer term = 7% payment decrease
$17,500 60 9.00% $363 A 10% lower APR = 3% payment decrease
Many people don't realize what their credit looks like. Credit is a huge factor in determining what interest rate you will pay. We have credit specialists that can help you not only understand your credit better but coach you on how to improve it. We offer this service to the public weather you are interested in a vehicle or not.
That's the Easy Car Way
