Unless you’ve got a huge pile of cash stacked up and nothing else to do with it, odds are when you buy a car you’re going to need to borrow the money to purchase it. In other words, you’ll have to seek financing. If you have reasonably good credit and a steady job with verifiable income this shouldn’t be a problem.
However, keep in mind the organization loaning you the money is going to want to make a profit on the money it put at risk when it granted you the loan. The profit is called “interest”. When you repay the loan, you’ll be expected to pay back the amount borrowed, plus a percentage of that amount — usually on a monthly basis — in “installments”.
The percentage of the amount loaned is called interest. The amount of interest you’ll pay is called the “loan rate”. In most cases the interest amount is added to the original amount borrowed and the total is divided be the number of months you agreed to pay to determine your installment payment.
How auto loan rates are calculated depends upon a number of factors; Credit History, Interest Type, Debt-to-Income Ratio, Down Payment, and Loan Term.