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Car LoansIf you are looking to purchase a new (or new to you) car, then a car loan might be required to enable you to make the purchase. Car loan interest can be calculated in a different way to loans from a bank. Bank loans will calculat the interest, daily, monthly or annually, meaning that repayments made are taken into account. If you are able to pay off the loan earlier, you will therefore save interest. But a car loan is typically calculated to include all interest on the day that it is taken out. Therefore, early repayments are of absolutely no benefit. Also, because repayments are not being included, the total amount of interest charged can be a lot more for the same APR. For these reasons, an Unsecured Loan from a bank might be cheaper. Compare the total repayments for a couple of lenders and take advice before committing to a loan.
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