Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Used Auto Financing and other Auto Loans topics.
Chances are that if you're buying a used car you aren't going to have the full purchase price in cash (that means getting a used car loan). Shopping around for the best loan beforehand will keep you from succumbing to high-pressure tactics car dealers use to try to convince customers to accept their financing options at higher rates.
The best way to compare the true cost of one loan to another is to find out what the annual percentage rate (APR) is. APR is the actual interest rate you pay annually on the unpaid balance of the loan, including any fees.
|Jennifer Mathes, Ph.D.|