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
avatar
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.”
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies