Financial Impact of Interest Rate in Automotive Financing
1 month ago
How important is getting the best interest rate on your next automobile purchase? Many consumers may know the answer to this question. However, many are unaware of the impact that interest rate can have on their monthly payment, as well as a drastic effect on the overall total of payments over the course of the term. To get a realistic look at this, we will compare Charge-A- Car's set interest rate of 12.95% to a common Missouri Buy Here Pay Here average of 21.95%. The comparison of a 36 month term at a finance amount of $11,500 shows a drastic financial difference. The loan with an interest rate of 21.95% carries a monthly payment of $439.04 and an overall finance charge of $4305.33. Now let's look at the benefit of Charge-A-Car's rate. With the same 36 month term and finance amount, the monthly payment on this loan will be substantially lower at $387.29 with the overall finance charge at a much lower amount of $2442.02! With this illustration it's very easy to see the significant monetary difference that interest rate makes when financing your vehicle. This is one of the many benefits of purchasing from Charge-A-Car in Aurora, MO. When you or your family need to finance your next vehicle, come see how Charge-A-Car goes above and beyond to be the best deal for you!