Financing Basics
Understanding Loan Terms and Interest Rates
How term length affects payments — and what 'good' looks like for your situation.
Maple Drive Team
January 5, 2025
3 min read
Understanding Loan Terms and Interest Rates
How term length affects payments — and what 'good' looks like for your situation.
What a loan term really changes
A longer term usually means a lower monthly payment — but you may pay more interest overall.
Interest rates depend on risk
Rates vary based on credit, income stability, down payment, and the vehicle itself. Two people buying the same car can receive different rates.
Choosing the right balance
The best loan is the one you can afford comfortably while still paying it off in a reasonable time.
Smart moves to consider
- If you can, add a down payment to reduce the financed amount
- Avoid stretching terms just to 'make the payment work'
- Keep room in your budget for insurance, fuel, and maintenance
Get pre-approved with Maple Drive
Start with a quick online application and get matched with financing options that fit your situation — Canada-wide.
Maple Drive is not a lender. We connect Canadians with trusted financing partners.