null 3 Factors that Can Influence Your Monthly Car Payment
It goes without saying that buying a car is a major purchase — one
that involves a lot of research, time and, of course, money. If you’re
a first-time car buyer or someone with bad credit who is looking to
get a car loan or vehicle financing, it’s important for you to
understand the factors that may influence your monthly car payment.
First, let’s go over the basics of auto financing (or
Generally, when you get approved for financing or a car loan, the lender approves you
for a certain amount of money to pay back over an agreed-upon period
of time. Your car payments are typically broken down into monthly
installments, which are largely determined by the following factors.
Your credit history
Your credit history determines your credit score, which is a
number that lenders (such as banks, finance companies) typically
reference to establish how much money they are willing to lend you
as well as determine the corresponding interest rate, both of
which impact the amount of your monthly car payment.
Your down payment amount
Generally, the larger your down payment, the lower the overall
loan amount, monthly car payment and, potentially, total interest paid.
The length of your auto financing or car loan
The length or term of your auto financing or car loan term
combined with your annual percentage rate (APR) will determine
your monthly car payment. As a result, the longer the term of your
financing or loan, the lower your monthly car payment.
Credit Acceptance is an indirect subprime finance company with more
than 12,000 enrolled car dealers across the nation who can say “yes”
to every customer, regardless of their credit history. If you’re a car
buyer with bad credit or no credit who is currently in the market to
purchase a vehicle, simply fill out this short form on our website to get
connected with an enrolled car dealer who can help you start your
credit approval today!