Definition
Another term for an auto loan. You make monthly payments to pay off the total amount borrowed plus interest.
What to consider
- Know the total amount you’ll pay over the life of your loan.
- Small extra payments can help reduce your overall interest.
- Keep your monthly payment in line with your budget.
Real world scenarios
- Devin finances a new car, budgeting his monthly car note into his overall expenses to avoid financial strain.
- Mya refinances her car note when she finds a lender offering a lower interest rate, trimming $50 off her monthly payment.
- Paying a bit extra on each car note installment helps Lucas shorten the loan term and save on interest.
Related terms
Related Playbooks
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