CAR LOAN RATE INFORMATION

Here's the good news from the rough average rates you've been seeing on every page.

The amount you pay in interest will change depending on whether you are buying a new or used car, the length of the loan, the age of the car, and maybe, most importantly of all, the size of your downpayment.

Another factor people run into at auto dealerships is what's known as gap insurance. That can be extra money, so let's explain how that works.

Suppose you apply online, you like the terms and the vehicle, and you drive off the lot and go home. Now imagine the car is stolen from your driveway, then crashed and totalled, the very next morning.

Your insurance company will pay off the value of your car, but there's a catch, and that's all the unpaid interest on your loan. There will be a gap between you owe and what you get, and that's why some dealers insist on gap insurance.

This is an illustration of why a bad credit car loan is a great way to rebuild your credit -- lenders are more willing to work with you because the loan is backed by an asset (your car). That's why rates will be lower on a car loan than on an unsecured debt (like a credit card).