What's a finance charge on a car loan?

Answered by Car Loans Expert Jim on February 18, 2021

I've heard the term "finance charge" thrown around when it comes to borrowing and car loans. What does it mean?

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Jim

Car Loans Expert

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.


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