Car Finance 101
Posted by admin on February 19, 2008 in Finance
Consider this: the average rate of interest on auto loans when 2000 was coming to an end was 9.25%. But today that interest rate has plummeted to 6.9%. If you had taken a loan in the year 2000 of $20,000 and you refinance it today, your saving would be an admirable $1,500 over the lifetime of the loan.
Then why aren’t people thinking about auto loans in the same strain as home loans? That is because auto loans are short term loans and they are closed much earlier. People think that within such a short time there wouldn’t be an appreciable decrease in the interest rates to consider refinancing.
