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For the first time in the history of lending business, installment loans were used to buy car (Ford Model-T) in 1908. Subsequently, in 1919 The General Motors via its Acceptance Corporation provided buyers with car loans. And now, after nearly a century, auto loans are fulfilling dreams of millions and millions of people not just in the United States but across the world. These long term debts often ask for a 20% down payment. Apart from that, a healthy credit score and a lengthy credit experience can help a borrower qualify for higher amounts. The standard term of a car loan is 5 years. However, the borrower can go for even a 4-year or as long as 7-year term. Shorter term means higher monthly payment, but less interest in total. Apart from that, much depends on the lender that is financing your dream vehicle.
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