Definitions and Explanations |
Interest Rate:
The periodic charge, expressed as a percentage, for the use of credit. |
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Loan Term:
The length of time that it will take to repay
the loan. Typical loan terms are 12, 24, 36, 48, 60, and up to 84 months.
Other terms may be available.
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Purchase price:
The amount of money agreed upon by both parties
as the value of the item for sale. Negotiation can cause this figure
to be different from the manufacturer's suggested retail price.
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Down Payment:
The up-front cash payment that the buyer makes
to reduce the amount borrowed to purchase a car; the difference
between the loan amount and the purchase price. A trade-in allowance
and/or rebate also may be used as down payment. The down payment
helps protect the bank, credit union or finance company in case the
borrower defaults on the loan. A typical down payment is about 30 percent
of the vehicle’s sale price. |
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Loan Margin Guide: |
Passenger Vehicle |
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Margin of Financing |
Maximum Loan Duration |
Age of Vehicle |
Loan Margin |
Age of Vehicle |
Loan Duration |
New |
up to 85% |
New and up to 3 years |
up to 84 months |
up to 5 years |
up to 80% |
4 - 8 years |
up to 60 months |
6 - 8 years |
up to 75% |
9 - 10 years |
up to 48 months |
9 - 10 years |
up to 70% |
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Commercial Vehicle ( Lorries up to 2,500 kg) |
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Margin of Financing |
Maximum Loan Duration |
Age of Vehicle |
Loan Margin |
Age of Vehicle |
Loan Duration |
New and up to 5 years |
up to 80% |
New and up to 5 years |
up to 60 months |
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Values are subjective opinions based on the recent market conditions. DreamMotor.Com is not
responsible for actual or claimed deviation and the accuracy
of the www.DreamMotor.com Loan Calculator.
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