Fortunately, there is financing available from auto manufacturers’ credit departments, banks, credit unions, or other sources. With a down payment, you can finance the rest of the cost of the car, borrowing the money and paying it back in monthly installments. Naturally, any lender is going to make a profit and so they charge interest. You will come across the term “APR”. What does it mean and how does it affect your car loan?

APR Defined

APR stands for annual percentage rate. If you are looking for a new Honda for sale and will be financing it, there are charges that go along with the loan. 

All loans have interest which is a percentage of the total amount borrowed that is paid back with the principal. APR is the total of the interest plus any fees associated with the loan per year. How much these charges will be depends on several factors unique to your situation.

Credit Score

Your credit score plays a major role in your APR or just being approved for a loan. It is a number between 450 and 850 that represents your credit history, if any. It is impacted by the amount of debt you currently have, whether you are making timely payments, and the age of your credit accounts.

A high credit score means you are a low risk for lenders and will get you lower interest and APRs on loans. People whose credit score reflects greater risk will pay higher rates because the lender is taking a bigger chance of being repaid in full.

Credit Score Classifications

Credit scores are classified by the range the number sits in.

·        Excellent – 750-850

·        Good – 700-749

·        Fair – 650-699

·        Poor – 450-649

Taking the time to build a solid credit score improves your chances of getting a loan as well as a lower APR.

Advantage of a Low APR

A low APR means a lower total cost of a new car purchase than a higher one. Your interest and fees will be less which makes for a lower monthly payment. You may also be able to pay off the loan early, which will save you money on interest. A loan with a shorter term also saves money because you will be paying interest over a shorter period of time.

Down Payment

Many loans require that you put a down payment on the car you are buying. It’s a good idea to make as big a down payment as you can comfortably afford. You won’t have to borrow as much which makes your monthly payment lower and your APR may be less because the lender isn’t risking as much money. 

Check APR When Shopping

When looking for a new car that you plan to finance, shop around for the best APR as well as the best car. It’s always good to save money and APR has a big impact.

The post What Is APR and How Does It Affect Your Car Loan? appeared first on Practical Ethics News.

To help you figure all of this out, here are three things you shouldn’t do if you’ve been in a car accident. 

Let Your Emotions Get The Best Of You

While being in a car accident can be an emotional experience and bring up a lot of strong emotions in you, it’s going to be best for you if you can somehow keep your emotions in check and not allow them to get the best of you. 

This is especially important when you’re speaking with any other people who were involved in the accident or when you’re speaking to police officers and your insurance. What you don’t want to do is accept any fault in what happened, regardless of what you feel may have caused the accident. Even saying that you’re sorry to anyone at the scene can be construed as admitting fault, which can cause you bigger problems in the future as you deal with insurance and potential legal ramifications. 

Go Forward Without An Attorney

In very small accidents where there isn’t much damage or injury, you may be able to get away with not working with an attorney to make sure things work out in the best way possible for you. But for accidents where any significant amount of damage or injury has taken place, or if you’re just worried about how things are going to unfold regarding the accident, you’ll want to go forward with an attorney. 

An attorney who specializes in dealing with car accidents can help to ensure that your insurance pays what it should, that you’re not held responsible for something that shouldn’t be your responsibility, and that you’re not taken advantage of.  

Think You’ll Be Fine Tomorrow

In the immediate aftermath of a car accident, you might have so much adrenaline running through your system that you don’t realize if you’ve sustained injuries from the crash. Because of this, it’s always a good idea to get checked out by a doctor after an accident, even if you think you’re fine. 

In the days following an accident, it’s not uncommon to feel both physical and psychological effects from being in a car accident. So if you’re able to, try to take it easy after a car accident and be gentle with yourself. Trademark Registration in Canada.

If you’re ever in a car accident, consider using the tips mentioned above to help you know what you should and shouldn’t do moving forward. 

The post 3 Things You Shouldn’t Do If You’ve Been In A Car Accident appeared first on Practical Ethics News.