How are loan rates determined?
The size of monthly loan payments
depends on the amount borrowed, the length of the loan, the interest
rate and other factors such as your credit history. Paying more money
initially lowers the principal of the loan, thus reducing individual
payments. At any period during the loan you may opt to pay off the
principal in its entirety, at which point the title of the vehicle is
transferred to you.
General loan specifications:
Down
payment amounts may range between 10 to 20 percent of the vehicle's
total cost, although some purchases require no down payment. A typical
loan period is five years with an annual percentage rate around 8
percent. Some manufacturers offer lower rates, but be sure to
investigate any associated conditions or clauses.
