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Our Auto Loan offers a nationwide network of auto loan companies to assist you in getting the
auto financing you need even if you have less than perfect credit. Our short, simple form takes
less than a minute to complete, making shopping for an auto loan quick and easy!

Auto loans are a part of the equation in the vast majority of new and late model used vehicle
purchases. Interestingly, consumers will spend days shopping vehicle prices, yet many do not
give any thought to shopping for auto loans. Comparison shopping and pre-qualifying for an auto
loan should be the first steps you take when buying a car, not the last. Failure to do so can be
costly, as financing is one of the most frequently missed car buying opportunities. An auto loan

is a unique part of the buying equation and it requires that you focus on it as a separate issue.
Reduce your monthly payment by just $16.70 and you will save $1,000 (on a 60 month auto loan).
There is no great mystery to auto loans. Nonetheless, it is important to understand the main
components of an auto loan.

The following five elements are the basic parts of an auto loan. Understanding them and how
they relate to each other will help you to effectively shop for an auto loan.

Annual Percentage Rate (APR) - the Annual Percentage Rate (APR) is a yearly rate of interest that
includes all of the fees and expenses paid to acquire the loan. Federal law requires lenders to
disclose the APR. The APR is essentially the ONLY rate you will need to compare one loan (of the
same length) with another, because it includes all of the costs associated with acquiring the loan.
This makes it very easy for anyone to compare most loans.

Down Payment - The down payment is the total amount of money that the borrower puts down towards
the purchase of a vehicle at the time of purchase and origination of the loan. This does NOT include
any credits for trade equity or rebates and incentives.

Interest Rate - The interest rate is a part of the APR equation. Interest is the annual rate of
return that the lender receives on the Principal of the loan. The interest rate is really relevant
to the lender, while the APR relevant to the borrower. This is how the lender determines how much
they are making on the loan.

The interest rate is also the cause of more confusion about auto loans than any other single
factor. People tend to compare the interest rate when they should be comparing the APR. We have
included this definition primarily to try and clarify the difference between interest rate and
in an attempt to prevent any confusion.

Loan Term - This is the length of the loan, usually broken down into months (24, 36, etc.).
While it is true that the longer the “Loan Term”, the lower the monthly payment, increasing
the length of the loan to lower the monthly payment should be done with a great deal of caution.
Getting the lowest APR is the “Golden Rule” of auto buying; not simply getting the lowest payment
is the primary concern when shopping for an auto loan.

Principal - The amount of the auto loan, without the interest factored in. In other words,
the amount you are financing, the amount that you will be paying interest on. This is
arrived at in the following way:

Determine the vehicle’s final sales price: ADD all relevant fees (taxes, titling obligations,
trade inequity, etc.) SUBTRACT amount of down payment (if applicable) SUBTRACT any trade
equity (if applicable) SUBTRACT any rebates or incentives (if applicable)

The number that you reach after this process will be the principal. This process may vary slightly
from state to state, based on how the final sales price is determined for those particular state
(vehicle) sales taxes. MOST states tax on the sales price prior to any reductions (the highest amount).
SOME states will allow the final sales price to be reduced by equity of the trade to PRIOR to
determining the (vehicle) sales tax.