Definitions and Explanations

Interest Rate: The periodic charge, expressed as a percentage, for the use of credit.

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.

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.

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.

Loan Margin Guide:

Passenger Vehicle

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%

Commercial Vehicle ( Lorries up to 2,500 kg)

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

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.