Auto Financing Explained for Canadians

TORONTO - Jan. 23, 2024 - PRLog -- It is in our experience that we highly recommend getting pre-approved for a car loan before you begin looking for your next used vehicle. It's important to understand how auto financing works as this is going to provide you with an understanding of how your financial payments are broken down and also allow you to get the right paperwork in order.

There are three components to a car loan. This includes interest rate, terms, and principal.

Interest rate: this is the percentage charged by the lender for you to borrow their money. This rate can vary depending on things like vehicle, loan terms, and how good or bad your credit score is.

Terms: this is the length of time you agree to make payments to pay back your loan amount (plus interest). Typical terms can be anywhere between 36-72 months. Sometimes you can shorten or lengthen the terms but you need to discuss and agree with your lender.

Principal: this is the total cost of the vehicle plus additional fees from the lender or dealership.

If you are looking for Toronto Used Cars, (https://www.nexcar.ca/) go to our website to see all our available vehicles! Contact us if you have any questions.

🚘 Learn More: https://www.nexcar.ca/finance/

📞 Phone: (416) 633-8188

📬 Email: info@nexcar.ca

📍 Location: 1235 Finch Ave W, Toronto, ON M3J 2G4

Contact
Nexcar Auto Sales
info@nexcar.ca
(416) 633-8188