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?

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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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