Buying a Car: Understanding Your Loan
A car loan is a great way to spread the cost of a vehicle over several years. However, it's important to understand how interest rates and loan terms affect your monthly budget and the total price you pay for the car.
Tips for a Better Deal
- Check Your Credit: A higher credit score usually leads to lower interest rates.
- Larger Down Payment: The more you pay upfront, the less you borrow and the less interest you'll pay.
- Shorter Terms: While a 72-month loan has lower monthly payments, a 48 or 60-month loan will save you significant money in interest.
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