Review:
Auto Loan
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
An auto loan is a financial product used to purchase a vehicle, where the borrower agrees to repay the lender over a set period of time with interest added.
Key Features
- Interest rate
- Loan term
- Monthly payments
- Down payment
- Credit score requirements
Pros
- Helps individuals afford a vehicle they may not be able to pay for upfront
- Allows for manageable monthly payments
- Can help build credit if payments are made on time
Cons
- Accrues interest over time, resulting in higher total cost of the vehicle
- Defaulting on payments can lead to repossession of the vehicle