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Advice from a credit expert goes a long way in understanding Car finance rates are based in part, on the term and the amount of the loan. Car finance rates increase with longer terms, which is due to vehicle depreciation. The fact that a car's value depreciates significantly over the first few years makes it much riskier for a lender to recover the value of a long-term car loan in the case of default. Therefore, shorter-term car loans carry lower car finance rates in comparison. Car loan...

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