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7 tips for taking a car loan from family

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If you need to borrow money for a car, but your credit isn't great, the people closest to you may be more willing than a bank to lend you money. But borrowing from family and friends can lead to problems if you're unable to pay back the car loan, says personal finance expert Susan Hirshman, author of "Does This Make My Assets Look Fat?"

However, when borrowing from family or friends is your only option, you can take steps to help smooth the process. "The goal is not to jeopardize the relationship," she says.

Here are seven tips from Hirshman and other personal finance experts on how to plan out an auto loan from family and friends, while keeping the friendships and family ties intact.


 

 

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Auto Averages
Product Rate +/- Last week
48 month used car loan
2.93% 2.97%
48 month new car loan
2.44% 2.45%
36 month used car loan
2.87% 2.93%
36 month new car loan
2.29% 2.29%
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