Guide to 'Auto Loans'

Common terms used in Auto Loans
Principal: This is the term used to describe the amount of money that is borrowed for the auto loan. The principal amount that is owed will go down when borrowers make regular monthly payments.

Interest Rate: This is the interest rate for the auto loan you will receive from your lender

Loan Term: This is the length of time you choose to pay off your auto loan (e.g. 3 years, 4 years, 5 years, etc.)