BY KAIA ZAWADI
When shopping for a new or used car you need to decide on how you’re going to pay for it. If paying for the car with cash isn’t enough, consumers may need a car loan to finance the purchase.
Below are a few car financing basics to get an understanding of how these particular loans work, and how you can get the best loan for your vehicle. You apply to borrow money from a lender and pay them back over time with interest.
Also factor in that you will pay taxes and fees plus additional expenses associated with owning a car. Look at factors such as insurance, gas and maintenance before determining which car may be in your budget.
This means the amount of time given for you to pay back the loan. The majority of car loans are repaid with monthly installments, sending the lender a set amount each month. A longer auto loan might result in a lower monthly payment, but over the long haul, you’ll pay more in interest.continue reading »