What does "per diem" mean on a car loan?

I was reviewing my car loan and I noticed that the contract had a $5 per diem charge. What is this?

Answer provided by
Eric Schad
Answered on Jun 02, 2021
“In all likelihood, the per diem charge is just what you’re paying every day for the loan.
To make the loan make more sense to you, some lenders will show you that per diem charge. It’s nothing to be worried about—unless it’s tacked on to the actual loan amount. If it’s an added charge, you should run away from the loan.”

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