How to Understand Car Loans
Use our car loan infographic to learn how car loans are
calculated, and find what you’ll be paying each month on
a given car!
Car Loans Payment Equation
What is a Monthly Car Loan Comprised of?
What does Principal mean?
The total amount borrowed
- +Vehicle cost
- +Lender or dealership fees
- +Additional options & add-ons
What does a Term mean?
The time used to pay back a loan
- AKA: Amortization
- Often 72-84 months long
- Arrange in 6-month increments
What does Interest Rate mean?
The cost of borrowing money
- AKA: Annual Percentage Rate (APR)
- Derived from loan term, vehicle, and borrower's financial circumstances
When you apply, you need:
Proof of Income: $2000/month for at least 1 month
Driver's License: Ability to legally drive
Bank Account: Pre-authorized debit
Down Payment: Increase for easier loan approval depending on vehicle
Residence Details: Current Address, monthly rent, mortgage payment
Contact Info: Name, D.O.B, phone number, email, etc.
Credit Check: DriveAxis.ca accepts all kinds of credit!