Getting Approved for your Car Loan at CarOne
At CarOne, we pride ourselves on transparency throughout the entire car buying process, including the automotive finance process. To this end, we’ve gathered all of the information to help you understand how creditors make decisions to get you Approved for financing a vehicle. These decisions are based on four main factors:
- Vehicle selection: cost, age, and mileage
- Application information: employment, residence, and income information
- Credit history: information contained on your credit bureau
- Down payment: total of cash and trade equity
Getting Approved for Automotive Financing
To get the best car financing offer, you should select a vehicle that fits your budget and provides as much of a down payment as possible. These two factors alone may increase your likelihood of approval, could improve your offer, and will reduce your monthly payment. Making sure your monthly payment is within your budget is important.
Learn how your car loan will look by completing our free online Kingston car loan application. We’ve also completed a detailed online Frequently Ask Questions that answers common car loan questions. We believe providing you, the customer with all the info we can better prepare you for financing your next set of wheels with CarOne. We pride ourselves on the ability on getting your approved!
Factors Affecting Your Monthly Car Payment
Your monthly auto payment is determined by these three major factors listed below in the order of impact:
- Amount Financed
- Term or length of contract
- Annual Percentage Rate (APR)
The following illustrates the impact of each
| Amount financed | Term in months | APR | Monthly payment | Comments |
|---|---|---|---|---|
| $17,500 | 60 | 10.00% | $372 | Base example |
| $15,750 | 60 | 10.00% | $335 | Lowering the amount financed by 10% = 10% payment decrease |
| $17,500 | 66 | 10.00% | $346 | A 10% longer term = 7% payment decrease |
| $17,500 | 60 | 9.00% | $363 | A 10% lower APR = 3% payment decrease |