Principal: This refers to the amount of money that is being borrowed to purchase the vehicle.

Interest: This is the total cost of borrowing cash, expressed as a percentage of the principal. The interest rate will affect the monthly payment amount and the total cost of the loan.

Term: The term is the length of the loan, usually expressed in months. A longer loan term will result in lower monthly payments, but a higher total cost due to the longer period of interest accrual.

Down payment is the cash that you put towards the purchase price of the vehicle upfront. A larger down payment will result in a smaller loan amount and lower monthly payments.

Monthly payment is the amount that the borrower is required to repay monthly to pay off the loan. The monthly payment is calculated based on the principal, interest rate, and term of the loan.

Categories: Finance