carloanscanada.com uses cookies to enhance your browsing experience. Learn more about how we use cookies.

ACCEPT COOKIES
Resources
GET STARTED
What Factors Determine Your Monthly Car Loan Payment?
3 October

What Factors Determine Your Monthly Car Loan Payment?

Posted by: 
Car Loans Canada

Knowing what your car's monthly payment will be in advance is an important step towards keeping your budget under control and being able to make your monthly payments. Frequently, however, people are confused about how a monthly payment is structured and how payments are structured. In this article, we will look at how your monthly payment is determined. Some of these points might be familiar, but others may be new to you.

Your Credit History and Credit Score Definitely Matter

If you have had problems with your credit and consequently have a low credit score, this is something that will impact your monthly payment. A low credit score means that a car loan lender will charge you a higher interest rate. A higher interest rate translates into you having to pay more interest on the money you borrowed. The end result is that you will pay more money to own a given car if you have a low credit score than someone that has a high credit score. For the lender, it is strictly a matter of risk assessment and management.

The Down Payment Factor

When you buy a house, the amount that you put down on that house greatly impacts your monthly payment due to the fact that you are financing less of the purchase price with the lender. This, in turn, lowers your monthly payment. The more you put down the lower your bill. However, buying a car can be a different experience. Why? Car dealerships often will work with consumers and offer them no money down or zero money down car buying options that just aren't available for the purchase of a home.

Apply for Financing

The Number of Months

A third major factor in determining how much you monthly car payments are is the number of months your car loan will run. Some car loans can go as long as 72 months, for example. Typically, a new car loan will be 60 months, but there is a good deal of variation. Used car loans also vary in length. A mix of these three factors has much to do with determining your final monthly payment.

Three Key Factors That Will Determine Your Monthly Payment

  1. Credit history and credit score
  2. Down payment
  3. Months of financing
  4. Interest Rate

Get Pre-Approved Now!

Ready to apply for financing? Fill out our application form here to get started: https://carloanscanada.com/application

Tags:
  
auto loans   
auto loans for people with bad credit   
bad credit car loan   
bad credit car loans   
Share:

Search

Categories

    Ad goes here

    Subscribe

    Sign up to our newsletter to get the latest news and offers.

    cannot load

    Popular Tags

    Automotive

    Car

    Bad Credit

    Get Approved

    Used Cars

    Auto Loan

    Dealership

    Credit

    Interest Rates

    info@carloanscanada.com+1 888 536-4210

    Quick Links

    Apply NowAuto LoansCredit ScoreCredit RefreshFAQTerms of UsePrivacy Policy

    Subscribe To Our Newsletter

    cannot load

    © 2019Car Loans CanadaAll rights reserved

    APPLY NOW



    Top