The loan amount. It can be significantly less than the value of the car, depending on whether you have a trade-in vehicle and/or making a down payment. ; The annual percentage rate. Usually referred to as the APR, this is the effective interest rate you pay on your loan. ; The loan term. This is the amount of time you have to pay back the loan, typically 36–72 months.
With few exceptions, buying a car consists of two major activities: (1) finding the car, and (2) taking out a loan to pay for it. Understanding how car loans work, how they differ from...
Investopedia / Zoe Hansen How a Home Equity Loan Works Essentially, a home equity loan is akin to a mortgage, hence the name second mortgage. The equity in the home serves as collateral for...
Not sure how car loans work? Follow our guide to learn how to find and apply for a car loan with the best rates you can get.
Fixed rates · as low as ; New car (dealer) ; Used car (dealer) ; Buy out your lease
Credit score, Average APR, new car, Average APR, used car ; Superprime: 781-850., 5.25%., 7.13%. ; Prime: 661-780., 6.87%., 9.36%. ; Nonprime: 601-660., 9.83%., 13.92%.
Buy a Less Expensive Car: Be realistic about the vehicle you need, what you can afford, and how much debt you really want to take on. What Is the Interest Rate on a Car Loan? It's what a...
60-month auto loan options More terms available, Rates as low as ; New car (dealer), 5.69 % APR † ; Used car (dealer), 5.99 % APR † ; Refinance, 7.09 % APR †
Understanding how car loans work may help you save big. Learn about types of loans, lenders and key terms.
How do car loans work? Take time to fully understand the options of where to apply for a car loan and what the overall cost will be before your test drive.