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The key to determining if refinancing your loan is a good idea comes down to the amount of money you can potentially save. Weigh the pros and cons while taking advantage of an auto refinance ...
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It’s no secret that car payments have gotten out of control in recent years. According to a recent report from Edmunds.com , the average monthly new car payment hit a record high of $736 in Q3 2023.
This is even more apparent when the lifetime cost of the loan is considered (though most people will want to refinance their loans periodically). The total cost of the above loan at 5.5% is approximately $1,018,891.24 , while the higher rate of 9.5% would incur a lifetime cost of approximately $1,366,390.93 .
A direct loan is one that the borrower arranges with a lender directly. Indirect financing is arranged by the car dealership where the car is purchased. Legally, an indirect “loan” is not technically a loan; when a car buyer obtains financing facilitated by a dealership, the buyer and dealer sign a Retail Installment Sales Contract rather ...
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