Understanding a few terms makes car financing much less confusing — and helps you choose a loan that fits your budget.
Amount financed
The price of the car plus taxes and fees, minus your down payment and any trade-in value. In North Carolina, vehicle purchases include a 3% Highway Use Tax.
APR
The annual percentage rate is the yearly cost of borrowing, including interest and certain fees. It depends mostly on your credit history, the loan length and the vehicle. A lower APR means a lower payment and less total interest.
Term
How many months you will make payments, often 36 to 72. A longer term lowers the monthly payment but usually raises the total interest you pay, and you may owe more than the car is worth for longer.
Down payment
Money you pay upfront. A larger down payment reduces what you borrow, can help you get approved, and may help you get a better rate.
Putting it together
Try changing each number in our payment calculator to see the effect. You will quickly see how a bigger down payment or a shorter term changes the total cost.
Getting approved
Lenders look at your credit, income, how long you have been at your job and home, and your existing debts. Have recent pay stubs and proof of address ready to speed things up.
Ready to see where you stand? Apply online in about five minutes. We work with good, bad and no credit.
