7. Car Loans Wrap Up

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Great job researching and tracking loan payments and interest.

Most people take out some kind of loan in their lives.

Knowing how much your monthly payment will be and how much you will spend in interest will help you make the financial decision that works best for you.

But loan amounts and interest aren’t the only costs to take into consideration.

Car purchases also involve finance charges, add-ons, taxes, insurance, and a myriad of fees.

Account for as many of these costs as you can in your budget spreadsheet.

And make sure to investigate every line of your agreement before you actually make a purchase.

Research what you can afford, and even get pre-approved with a bank, credit union, or other loan company even before you start looking for cars.

If you have already done your research, you will know the price range you can afford and the lowest APR you can get with your credit score.

You will not be easily swayed by enticing offers at dealerships, and you will know exactly what your payments will be before you sign any contracts.

Before you shop for a car, house, or other major purchase, first shop for the loan!