In this CNBC Make Its One Minute Money hacks series, you can learn how to control your finances and money. Before buying a car, you should know many things, and these include car costs and all. If your earning is around $3000, then 10 per cent of your income goes to car loan repayment. And this repayment is about $300.
The interest rates for these car loans are also significant. These interest rates are based on credit score. If your credit score is high, then you can get low interest rates. If your credit score is between 661 to 780, then the interest rates would be around 4.71 per cent. These credit score in between 501 to 600 then the interest rates is 11.33 per cent.
In this way, the usage of credit score in a car loan is enormous. This car loan or auto loan is between 72-60 month loans. So you can start paying your car loan fastly then you can get the money back example of car loans. $30,000 with an APR of 5 per cent of car. And the $550 per month and 5 per cent interest rates.
For 60 months, you can pay up to $34,000.so $360 a month. Apart from these car loans, there are many other things like insurance, gas, expenses and many more things. The interest rates are 5 to 10 per cent in home pay. These are the factors you should know before buying a car loan.