Alternative Credit:Car Loans

Colton Schroeder

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Describing Car loans

A car loan is a way to purchase a new or used vehicle. You borrow money from a lender and pay them back over time, usually with interest.

How are interest rates and fees calculated?

You can use a Auto Loan Calculator to calculate how much money you owe for fees.
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What is the average APR and/or fees?

4.04 average APR.

What are the sources of car loans?

Bank of America Car loan, Chase auto loan, U.S. Bank auto loan, Capital One auto loan, My autoloan, Lending Tree auto loan, Nationwide auto loans.

Examples of Companies in the community that provides car loans?

Ollenburg, Pritchards
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When might a consumer seek a car loan?

When they are looking at getting a car.

Two advantages of car loans?

Building equity and insurance rates are lower on this type of loan as compared to other options.

Two disadvantages of having a car loan?

Higher monthly payments, you have to pay a down payment.

Three alternatives consumer should consider before using car loan?

Pay cash straight forward, buy with a credit card, or use a Cash-Out Refinance.

2 Cites with reputable sources.