Purchasing a car can have a major impact on your credit score and
monthly budget. When you begin the car-buying process, it’s important
for you to know how your auto financing or loan can affect your
finances. In a nutshell, the length of the loan term has a significant
relationship to your monthly car payment and interest cost.
There are plenty of online tools and calculators available to help
you determine how much the length of your auto loan or vehicle
financing can affect your monthly car payment. While financing your
car over a longer period of time may result in a lower monthly payment
that’s more appealing to your budget, it may also result in you paying
more interest over time. If your goal is to pay off your vehicle
quickly, shorter terms resulting in a higher monthly payment and lower
interest costs may be a good fit for your situation. If you are
focused on having a lower monthly payment, you may want a longer term.
While this may increase your interest cost, you will have a monthly
payment that meets your needs. Ultimately, you want to select the
option that works best for you and your budget.
If you are someone with bad credit or no credit who is currently in
the market to purchase a car and need to get approved for financing, a
dealer enrolled in the Credit Acceptance auto finance program can help
you get started on your credit approval today!