Do Car Accessories Get Rolled into The Auto Loan?

When you buy an automobile, you always have options on the features you’d like to include. You can get the bare minimum–no CD player, manual locks, etc.–to save on the car’s purchase price. You can also trick out your car–add a sun roof, tinted windows, etc. Remember that these amenities will increase the car’s price significantly. In order to pay for the upgrades, you can include them in your auto loan.

When you get an auto loan, you will get an estimate on how much the car is worth. This is especially true if you go to a financial institution to get your loan. They will estimate the entire worth of your car, or the price of vehicle less your down payment. You could buy a car with no added accessories and end up having a lower loan cost because your car is cheaper. If you add accessories, like a sun roof or a multi-disc CD player, the price of your car will rise. In other words, when you add accessories to your car, you are also increasing the size of your auto loan.

Including the cost of accessories in an auto loan is a common practice. It is all based on how much the car is worth. You may not actually be including a stereo or tinted windows in your auto loan, but they will be reflected in the total cost of the car. You loan amount will be directly influenced by the upgrades and accessories you choose.