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Lender decides which APR type to use

Dear Terry,
I used a balloon payment loan to buy a car and I am coming up on the due date. If I take out a loan to finance the balloon payment, which category of annual percentage rate applies -- the rate for buying a used car or the rate for a lease buyout?
-- Brad

Dear Brad,
Each lender treats this situation differently. You can likely find one that will treat it as either a refinance or a lease buyout, each of which should have a lower rate than a straight used-car loan.



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