What makes car loan different from other debts, and the best approach to paying it down.
Average new car loan rate was around 7.5-8% in 2024 for borrowers with good credit, higher for used cars. Car loans are secured (the lender can repossess), which keeps rates lower than credit cards. Unlike a home, a car depreciates — you can end up "underwater" (owing more than the car is worth) if you borrowed heavily on a depreciating vehicle.
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