How Do Auto Loans Work?
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What Is a Car Loan?
How Auto Loans Work
Key Auto Loan Terms to Know
Annual Percentage Rate: The annual percentage rate, also known as APR, is the interest rate and fees a lender may charge when offering financing. Lenders must disclose the APR in nearly all consumer credit transactions under the Truth in Lending Act, so consumers generally have the ability to compare APRs on car loans. Buyer: The buyer is the primary consumer who purchases the vehicle from a seller. The buyer may sign a buyer’s order when buying a new or used car. Down Payment: A down payment is the amount of money a buyer may pay upfront to reduce total financing costs. One way consumers may avoid upside down auto loans is by making a sizable down payment when buying new or used vehicles. Loan Term: The loan term is the total length of time that a borrower has to repay the debt in full. Auto loan terms are usually measured in months, such as 48 months, 60 months, 84 months, and even 144-month car financing. Seller: The seller is the private person or car dealership selling you the vehicle. A private party auto loan can provide you with financing to buy a used vehicle from a private person selling a car. Vehicle Identification Number: The vehicle identification number, also known as the VIN, is a unique serial number for a car. You may find the VIN on the driver’s side dashboard of a car.
What Types of Lenders Offer Car Loans?
GAP Insurance Need to Knows
Personal Loans vs Auto Loans
Different Types of Auto Loans
Secured vs Unsecured Auto Loans
Simple vs Precomputed Interest Car Loans
Preapproved Auto Loans
Other Special Loan Types
No income verification car loans Military refinance auto loan 0% APR financing from captive finance companies affiliated with auto manufacturers
What Happens if an Auto Loan Is Not Paid Back?
Car Loan Requirements
Can Someone Take Over a Car Loan if Someone Dies?
Car Loan Alternatives
Saving up to buy the car with cash Save up a larger down payment so the amount financed is less Buying an affordable used car rather than a new car Leasing a car instead of buying a car Using home equity to finance a car Get a personal loan
Frequently Asked Questions
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