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Florida Auto Loans

When purchasing a new or used vehicle often times the vehicle must be financed.  There is a lot to know in the purchase of a vehicle right down to how to determine the costs of the loan, loan terms and terminology that you must understand to make an informed decision.  There are many loans available in the industry including bad credit loans.  4dmv.com brings you the information you need to know to make the best informed decision when purchasing a new or used vehicle.

Loan Calculator

Loan calculators are used to determine the cost of a vehicle.  A loan calculator will help you to determine the amount of the car loan and added fees and costs to the vehicle.  When you are on a restricted budget a loan calculator can help you not to go outside of your limits.

Term Length

The length of the loan is the amount of time that you have the loan prior to it being paid off.  The length of the loan is normally expressed in months. 

Most vehicle auto loans range between 24 to 84 months.  The advantage of a longer term loan is that the monthly payments are generally lower.  However, you are also paying more in interest rates!  Which is the reason that most experts advice auto buyers to go with a short loan over a long term loan.

Down Payment

A down payment applies towards the cost of your vehicle but not towards your loan.  Down payments can be made in either cash applied towards the vehicle or a trade-in vehicle or a combination of both

The size of the down payment determines your monthly payments.  Should you be seeking lower monthly payments then you will want to put a higher down payment on the vehicle.  So, with a higher down payment your overall savings are much greater.  For those with less than favorable credit this is especially true.

If you are purchasing a new car, you should be aware that often times you are not required to put a higher down payment, which gets more interest to the lending company and higher payments for you.  Experts suggest that you place a minimum of 20 percent of the new vehicle’s value down for the down payment. 


Many dealerships take your current vehicle as a trade in.  What this basically means is that you are trading your old, unwanted vehicle to receive a lower cost on a new vehicle.  Your trade in can act as your down payment.  Remember, most used cars sales obtain a higher price when selling to a third party.

Upside Down

What does Upside-Down mean?  It means that unfortunately you owe more on your vehicle than what it what it is valued at.  For many auto owners this is a common situation as new cars depreciate a great amount in their first year alone. 

To avoid this situation a large down payment is your best option.  As the experts suggest if you make a 20 percent down payment on your vehicle you will not be in the upside down trap.


The word definitely sounds legal, and it is!  But, simply put, it means paying your debt through installments.  In an automobile loan, it means the monthly installments. 

Amortization tables can be found through 4dmv.com’s Auto Loan Calculator Section which will show you point blank the break down in the principal and interest that you will be paying each month for the term of the loan as well as the balance remaining. 

Additional Information

For more information let 4dmv.com help you with hard to understand language through our easy to understand glossary guide.  With 4dmv.com you will easily be able to understand the process and the jargon involved in purchasing a new or used vehicle.

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