Advertisement
Ad space
Auto Loans, in plain language
Financing a vehicle — terms, equity and pre-approval.
What to know
- Loan amount, rate and term set your monthly payment
- Longer terms lower payments but cost more interest
- Pre-approval lets you shop like a cash buyer
- Cars depreciate, which can put you 'upside down'
Watch out: Stretching the term to shrink the payment can mean paying far more interest overall.
Key terms
TermHow long you have to repay, in months.
Negative equityOwing more than the vehicle is worth.
Pre-approvalA lender's conditional offer before you shop.
Advertisement
Ad space
Related guides
Credit Cards
APR, Explained Without the Jargon
What annual percentage rate really measures — and why it beats the sticker rate.
Read guide →
Credit Score
7 Habits That Build a Better Credit Score
The factors that move your score — and the ones that don't.
Read guide →