01 What is Auto Financing

Financing means borrowing money to make a purchase, usually the purchase of a larger, costlier item, and entering into a contract to repay this amount over time with interest or finance charges. Typically, a customer makes a down payment and agrees to repay the balance by making monthly payments. The payment amount is determined by the total amount financed, the repayment term (number of months), and annual percentage rate (APR).

 

 

02 A Credit Score

 A Credit Score is the metric most lenders use to determine your financial risk. The better your credit score on your credit report, the better the rate you are going to get. 

 

03 Debt to Income

The debt-to-income ratio helps lenders anticipate whether you will feasibly be able to pay off your loan in a timely fashion, by understanding how much of your regular income goes to existing debt.

 

04 Age and Quality of the Vehicle 

The age and the quality of the vehicle affects the terms of loans as well. Harlem Auto selectivity in vehicle conditions, the Supreme Certification including the exceptional reconditioning standards is a known advantage with the lenders we partner with. In the event of a default, the lender can repossess the vehicle and be able to effectively recoup losses with a high quality vehicle.

 

 

05 Length of Loan

The length of the loan indicates to lenders how long they have to put up with the risk. The shorter the length of the loan, the less risk they will take which means the more favorable the terms will be. It will be in your favor if you can afford a larger payment a month with a shorter term (length of the loan).