The August Auto Finance resource base is here to help you understand car loans and to make our process as simple and stress-free as possible.
Principal
The principal refers to the TOTAL cost of the vehicle including associated fees as well as any options or add ons chosen by you, our valued customer.
Term
The term of the loan is the length of time that payments will be made for. In most cases, terms will run anywhere between 36 and 72 months.
Interest Rates
The interest rate of a loan is the percentage that the lender is charging for you to borrow money. Interest rates vary on several factors chosen by the lenders. Some of these factors include age + mileage of the vehicle, past credit history, and length of time employed.
Step 1
The principal is the total cost of the vehicle including any associated fees that the lender or dealership may have for the car loan and any options or add-ons that you choose.
Step 2
The term of the loan is the length of time that payments will be made for. In most cases, terms will run anywhere between 36 and 72 months.
Step 3
The interest rate of a loan is the percentage that the lender is charging for you to borrow money. Interest rates vary on several factors, including the vehicle and the risk the lender perceives in lending the loan.
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