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car loan
Also known as: auto loan, car loans, auto loans, car loan, Car Loan
Facts (30)
Sources
How Different Forms of Debt Affect Our Mental Health: Study innerbody.com Jul 5, 2023 6 facts
measurementMore than half of survey respondents reported having home loan debt (63.1%) or credit card debt (60.1%), while less than half reported having student loans (42.3%) or auto loans (39.1%).
measurementCredit card debt was reported as the primary source of mental health struggles for 43% of Gen X participants, while auto loans (10.7%) and student loans (19.5%) were the primary sources for Gen Z participants.
measurementIn the third quarter of 2022, credit card balances in the United States increased by $38 billion, auto loans increased by $22 billion, and retail credit cards and other consumer loans increased by $21 billion.
measurementAmong participants with auto loans, 56% reported experiencing stress even when the interest rate was 0%.
measurementFor auto loans with interest rates of 7% or higher, respondents reported experiencing stress (72.4%), anxiety (59.1%), depression (49.6%), and restlessness (22.8%).
measurementThe average annual interest rates for debt types are 6.95% for credit cards, 4.33% for auto loans, 4.13% for student loans, and 4.03% for home loans.
Why Credit Reports and Scores Matter to Your Financial Health nul.org 5 facts
claimA good, very good, or exceptional credit score can help individuals qualify for lower interest rates and better terms on credit cards, mortgages, and auto loans.
claimA credit score may influence an individual's ability to qualify for credit cards, personal loans, private student loans, auto loans, or mortgages; rent an apartment or buy a house; set up utilities without a hefty deposit; secure lower interest rates; and get a job offer.
claimCredit mix considers the variety of credit types managed, such as installment credit (e.g., student loans, car loans) and revolving credit (e.g., credit cards), with a balanced mix generally helping credit scores.
claimCredit mix accounts for 10% of a FICO Score and involves responsibly managing different types of credit, such as installment credit (student loans, car loans) and revolving credit (credit cards).
claimRate shopping for home, auto, and student loans within a couple of weeks results in only one inquiry appearing on a credit report, having little to no effect on the credit score.
Understanding the Four Pillars of Personal Finance - Spero Financial spero.financial 4 facts
claimCars are considered depreciating assets because they lose value over their lifespan, and if a car loan balance exceeds the vehicle's value, the car is classified as a liability rather than an asset.
measurementTo calculate net worth, an individual should sum the value of all assets (e.g., a $200,000 home and a $10,000 car) and subtract the sum of all liabilities (e.g., a $60,000 mortgage and a $5,000 car loan), resulting in a net worth of $145,000.
claimA vehicle is considered a liability rather than an asset if the balance on the car loan exceeds the current value of the car, a state known as being "under water" on the loan.
claimLiabilities are financial obligations or items owed to others, including mortgages, student loans, car loans, credit card balances, taxes, unpaid bills, and money owed for services, as well as accrued interest and principal on loans.
4 Points of Personal Finance barnumfinancialgroup.com Sep 9, 2024 2 facts
Debt snowball vs. debt avalanche: Which strategy is right for you? businessinsider.com Apr 30, 2025 2 facts
claimThe debt snowball and debt avalanche methods are applicable to most types of debt, including personal loans, car loans, and mortgage debt.
claimThe debt snowball and debt avalanche repayment strategies are applicable to most types of debt, including personal loans, car loans, and mortgage debt.
Understanding Debt | Business and Management | Research Starters ebsco.com 2 facts
claimDebt can serve as a beneficial financial tool when managed well, such as student loans enabling access to higher education or auto loans providing transportation while spreading payments over time.
claimCommon forms of debt include credit card debt, auto loans, and installment loans for consumer goods.
The Hidden Costs of Debt: How It Impacts Your Mental Wellbeing moneyfit.org Jan 26, 2023 1 fact
claimMany individuals feel forced to remain in jobs they dislike because they need to generate consistent income to pay off credit card bills, auto loans, or personal loans.
Debt Snowball Vs Avalanche: Choosing the Right Method sbgfunding.com Feb 25, 2025 1 fact
measurementIn a hypothetical scenario using the debt avalanche method with Credit Card A ($2,000 balance at 20% interest), a Personal Loan ($10,000 balance at 8% interest), and a Car Loan ($15,000 balance at 5% interest), the debtor would focus on paying off Credit Card A first because it has the highest interest rate.
How Financial Stress Affects Mental Health - UGA Today news.uga.edu Aug 7, 2025 1 fact
claimSinha advises young adults to read the fine print on financial agreements, such as car loans and credit cards, to avoid hidden fees and unfavorable terms.
7 Ways Your Credit Score Affects Your Financial Health firstexchangebank.com Oct 10, 2023 1 fact
claimMaintaining a high credit score allows borrowers to secure better interest rates and offers on auto loans, which can result in hundreds or thousands of dollars in savings over time.
The Four Components of Personal Finance - OneMain Financial onemainfinancial.com Feb 3, 2022 1 fact
claimPoorly managed credit can negatively affect various financial aspects, including interest rates on car loans and the ability to rent or purchase a home.
How to plan for retirement | Vanguard investor.vanguard.com 1 fact
claimIndividuals approaching retirement should prioritize paying off high-interest debts, such as personal loans, credit cards, and auto loans, because these debts can reduce savings and lower the standard of living.
Credit Report vs Credit Score - Financial Education finances.extension.wisc.edu 1 fact
claimA credit report includes payment history for credit cards and loans (such as auto loans and mortgages), public financial records (bankruptcies, tax liens, and court judgments), and a record of inquiries made about the report within the past two years.
7 Behaviors That Hurt Your Credit Score | Credit Union of Colorado cuofco.org 1 fact
claimA healthy credit mix, which can influence a credit score, may include a variety of credit obligations such as credit cards, auto loans, personal loans, and retail store accounts.
Debt Avalanche vs. Debt Snowball: What's the Difference? - Ramsey ramseysolutions.com Jan 22, 2025 1 fact
measurementThe debt avalanche method example provided involves a $20,000 credit card at 20% interest, a $9,000 personal loan at 17% interest, a $10,000 student loan at 5% interest, a $16,000 truck loan at 4.25% interest, and a $2,000 car loan at 4% interest.