How Car Loans Work

KEY TAKEAWAYS:

  • Auto loans can feature some terms and words you may not have used previously. This video defines APR, term of a loan, principle balance, down payment, and direct lending.
  • Auto loan contracts are divided into two parts, principle balance and interest.
  • The higher the monthly loan payment, the shorter the term of the loan will be. This works the other way too, if the monthly loan payment is lower, the term of the loan will be longer. Sometimes, loans with shorter terms can have lower interest rates.
  • Before signing on a loan contract, it’s a good idea to check on your credit scores and taking a hard look at your budget to help determine what you can afford in a monthly loan payment, and a down payment.
  • GHS is here to help with any questions concerning your accounts and managing your money goals! Stop in to a branch or call us if you need us at (800) 732-4447.