If you need a new car but can not afford one outright, getting a loan can be an easy option as long as you get approved. All you have to do is pay for the car over time in monthly installments instead of all at once. However, you need to be aware that with a car loan comes interest, and this could be a major hassle for you if you are not prepared or do not understand it. In this video, you will learn everything you need to know about car loan interest.
The interest that comes with car loans is actually quite easy to understand. The video will provide you with a calculator app you can use to figure out how much money you will need to pay for your car every month, including the interest. If your credit score is good, then you will end up with a low interest rate, meaning you will only pay a little bit extra every month on top of the car payment. The longer you give yourself to pay off the loan, the lower each monthly payment will be. The calculator will show you exactly how much the interest will come to.