How much does a car loan cost you
It’s tempting to buy a new car, whether it’s an upgrade, a first car, or another car for the family. Whatever the reason, a car loan makes it easier to buy. Auto loans typically last three to five years, but some lenders may also offer loans for up to seven years. A longer loan can mean smaller assimilated monthly payments, making the car more affordable, but overall you’re paying more in interest. Remember, a car is a depreciating asset, so taking out a larger loan might not be the best thing to do. But if you take out a car loan for a short period of time, the NDEs will be heavy and non-payment will mean a stain on your credit report. Conditions also apply to the loan amount. For example, some lenders provide a loan for the full car showroom price, while others may offer a loan of up to 80%. Besides the interest rate on a car loan, also take a look at the applicable processing fees and other fees.
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