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For example, if your original $36,000 auto loan came with a 7 percent interest rate, even at just one point lower, you could save $1,012 over 60 months. Your Credit Score Has Improved
As with other types of loans, the overall cost of a car loan comes down to one major factor: the annual percentage rate. The APR includes both interest and lender fees, expressed as a percentage.
Refinancing to a lower rate on an auto loan could help drivers cut their monthly car payments. The Fed is likely to keep cutting interest rates, perhaps by another 1.50% through the end of 2025 ...
The APR is the percentage of a car loan amount you'll pay yearly in interest and fees. Knowing what APR is on a car and how to calculate APR can help you save.
You can use a calculator or the simple interest formula for amortizing loans to get the exact difference. For example, a $20,000 loan with a 48-month term at 10 percent APR costs $4,350.
Does it cost anything to refinance a car loan? Use this helpful guide to understand the fees that come with refinancing your car loan so you're not surprised.
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