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
Jim Donaher
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.

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