Most people who buy a used car acquire a loan to pay for it. You can apply for financing from a bank or credit union or get auto loans in Mill Creek from the dealership itself. After you qualify, you get your money in a single sum and then proceed to pay it back with interest over a specified period. The amount you borrow, how long it takes to pay it in full and the interest rate all affect how large or small your monthly payment will be. Many dealers are pleased to offer car financing with any credit history.
The 3 primary factors that determine your monthly payment and the total payment you will make over the term of the loan are:
- The 3-6 year length of the loan.
- The amount of the loan itself, which can be less than the car’s value depending upon the size of your down payment or value of a trade-in vehicle.
- The APR or annual percentage rate, which is the interest rate on the loan.
While a low monthly payment is appealing, this usually means that you will pay more for the vehicle over the length of the loan. A lower loan amount, lower APR and a longer-term loan will all affect your monthly payment amount, so it is important to carefully weigh each of these figures before signing a contract.
For more information on auto loans in Mill Creek and a vast selection of pre-owned vehicles, call Carson Cars at (855)583-9356. We have an excellent reputation in the Seattle area for value and service after the sale.