What's a finance charge on a car loan?
I've heard the term "finance charge" thrown around when it comes to borrowing and car loans. What does it mean?
Answer provided by
Answered on Mar 08, 2021
Put simply, a finance charge is the cost of borrowing money. With a car loan, the finance charge consists of the periodic payment of interest on the outstanding balance, as well as any application fees, filing fees, etc.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
If I pay more than the monthly amount due on a car loan, will that money go towards the principal?
I've got some extra money lying around and I'm trying to decide what to do with it. If I start paying more money on my car loan, will it go towards the principal only?
Mar 25, 2021
What should I do if I can't afford car insurance?
I've been shopping around for car insurance, but all the quotes are really really pricey. What if I just can't afford it?
Mar 12, 2021
Can I switch my car insurance to a new vehicle without a lapse in policy?
I recently traded in my vehicle to a dealership and got a new ride. But I totally forgot to switch the policy until days later. Can I switch my car insurance to the new vehicle or will it cause a lapse in coverage?
Apr 16, 2021