Trade-in value: Like a down payment, you can potentially reduce your borrowed amount by trading in your car and deducting the trade-in value from the amount you borrow. ; Amount financed: This is the amount you’ll actually borrow, after any down payment and/or trade-in is subtracted from the price of the vehicle, and any fees or added costs are added. The amount financed will be the basis for your monthly payment. ; Credit score: Lenders will use your credit score to evaluate your general creditworthiness, using this number to inform their offers and determine interest rates. Higher scores, which indicate better creditworthiness and a lower risk to lenders, typically translate to lower interest rates.
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