At Smitty’s Motor company we pride ourselves on the professionalism and determination to help anyone wanting to get into a newer vehicle.

Credit isn’t always the best, but that’s o.k. – We don’t judge you by your credit and won’t treat you differently because of it.

For Finance questions please call 903-583-2277 or email

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The Basics of Car Loans

A car loan is one way for you to purchase a new or used vehicle. You borrow money from a lender and pay them back over time, usually with interest. The amount you borrow is called the loan principal or financed balance.

Lenders charge interest, which is how they cover their administrative costs, cover losses from people who fail to make timely payments, and earn a profit. The interest rate is a percentage of the loan that you must pay back in addition to the loan principal. Interest rates are determined by your credit history. The higher the risk of you not paying causes a higher interest rate. Each bank is different on how they determine the risk involved and how how the rate is based on that risk.

Few people have the luxury of paying cash for a vehicle. For the rest of us, we have to get a line of credit, with the vehicle as the collateral. We will be happy to give you more information about how to finance a vehicle and what your interest rate. Contact us today for more details.


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