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As with other types of loans, the overall cost of a car loan comes down to one major factor: the annual percentage rate. The APR includes both interest and lender fees, expressed as a percentage.
Buying a car is a major financial commitment, and for most people, it involves taking out a loan. Along with the loan comes interest, which is the cost of borrowing money from a lender. Read Next:...
The APR is the percentage of a car loan amount you'll pay yearly in interest and fees. Knowing what APR is on a car and how to calculate APR can help you save.
Learn how to determine an affordable car payment that aligns with your income, expenses and financial goals using the 20/4/10 rule.
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Interest rates play a crucial role in shaping the true cost of a used car. The more expensive the car, and the higher the rate, the more expensive the monthly payment will be.