What is the finance charge in a financing agreement on a car?
I was looking over the paperwork on a car loan that I'm getting. I came across a finance charge, but I'm not sure what it means. What is the financing charge on a financing agreement?
“Financing charges are the total of all the interest, fees, and other amounts you have to pay when signing a loan agreement. Lenders roll this total amount into your loan.
You may be able to pay cash for some of the fees if you want to. Doing so means you won’t have to pay interest on things like:
- origination fees
- title fees
- registration fees
You can check with your lender regarding their financing charges and if you have any additional options for payment.
Don’t forget that when you buy a new vehicle, you will need proper coverage. Use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
MORE: What is a Car Lien?
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