Is Car Finance The Same As A Loan

1. Is Car Finance The Same As A Loan? You want that nice shiny car you've just seen ? but confused by all the car finance jargon? ? If so read on... A big challenge in buying a car Loans is getting the finances for the venture. Not so many people can afford to pay the total amount of the car upfront. Because of this, numerous financial tools allow buyers to get a new or used vehicle and pay some affordable fixed costs monthly. With all these different financial plans and terminologies, a buyer needs to understand whether car finance is the same thing a getting a loan. Financing a car means that you borrow an amount of money either via a dealer or from a bank, and then you will repay that sum, usually plus interest, over a period of time. Car finance is similar to a loan in that you have to pay back the amount you borrowed, plus interest, but depending on the type of finance deal, there can also be other fees. Interest Rates This rate is the amount you need to pay on top of the monthly repayments, it's based on the amount you borrowed, the term over which you borrow, and your credit rating. You pay this to the lender for the privilege of borrowing the money. The annual percentage rate (APR) is a good figure to get and this will reflect the basic rate charged overtime to the borrower. This is useful for comparing like for like with different lenders. Contact Details: Website URL:- https://www.carmoola.co.uk