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THE ASPIRA ASSOCIATION and CHRYSLER FINANCIAL Financial Life Skills Program

Module Objectives. Understand how a lender decides whether to finance your vehicle loanCalculate how much you can afford to borrow for a vehicleIdentify companies that make car loans and provide vehicle financingRecognize the types of loans that are available for vehicle purchaseLearn how to sho

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THE ASPIRA ASSOCIATION and CHRYSLER FINANCIAL Financial Life Skills Program

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    1. THE ASPIRA ASSOCIATION and CHRYSLER FINANCIAL Financial Life Skills Program Module 5: Getting a Vehicle Loan

    2. Module Objectives Understand how a lender decides whether to finance your vehicle loan Calculate how much you can afford to borrow for a vehicle Identify companies that make car loans and provide vehicle financing Recognize the types of loans that are available for vehicle purchase Learn how to shop for the best loans rates and terms Understand the loan application process Understand the loan approval process Recognize your rights as a consumer

    3. Loan Basics What is a Car Loan? Anytime you borrow money you sign a promissory note, which is your written promise to repay a loan. When you get a car loan, you are agreeing to use the car as the loan guarantee. Principal, Interest and APR Interest is the cost paid to a lender for the money that is borrowed Principal is the original amount of the loan or debt on which interest is calculated. Annual Percentage Rate or APR is the total cost or charge for the financing of a loan yearly expressed as a percentage of the loan amount.

    4. Down Payment Down payment is the amount of cash you bring to the purchase. The down payment can demonstrate to a lender that you're willing to make an investment in the deal, and perhaps gain a more favorable interest rate.

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