How is my monthly payment determined?

There are various factors that go into determining the monthly payment for your new or pre-owned vehicle. The factors include but are not limited to price, interest rate, the term of the loan, and cash down. After a price is determined the finance manager removes the amount of cash from the purchase price before determining the payment. The payment is determined by amortizing the price of the vehicle over the term of the loan at the designated interest rate. A car loan is a simple interest loan; this means that the interest is compounded on a daily basis.

How is my interest rate determined?

As a dealer we have no say in determining your interest rate. An interest rate is determined by the bank financing your car loan and is based off of your credit rating. As the dealer we will look at your credit report and credit score and determine which bank we feel will give you the best interest rate. Over our 90 years in the business we have developed top notch banking relationships which help us to get you the best interest rate possible by using our relationships.

Is there any pre-pay penalty on my loan?

No there is no pre-pay penalty on an automobile loan. You can pay off the vehicle at anytime throughout the term of the loan.

Why do my payments add up to more than the purchase price of the vehicle?

When you finance a vehicle you are paying interest to the bank that has issued the loan to you. This interest is included on every payment that you make to your bank. The difference between the purchase price and the total of the payments is the interest added up over the term of the loan. It will also include any taxes and fees that are incurred at the time that you sign for your vehicle.

What is a doc fee and why do I have to pay it?

A doc fee is a fee charged by dealerships to take care of all things related to your title, registration, plate fees, and for arranging financing with the banks.