Here is the catch: if you choose a higher rate of interest and you decide to make payments for, say, 5 years, you will be paying more for the car in the long run than if you had chosen a shorter payment period. So, you should choose a shorter period for payments as this will help you get out of the loan faster.
- The monthly payment
Some people assume that they are good to go as long as they afford to make the monthly payments, but this is not a good assumption. As a matter of fact, this is a terrible mistake.
So, before you apply for a car loan, make sure you keep these 4 factors in mind.
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