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Source: Experian Q2 2018 State of the Automotive Finance Market Keeping an Existing Automobile Instead of Purchasing a New One. The first factor to consider is the motivation behind the purchase. For example, if the individual owns a car that is relatively reliable, even if it is older, they need to weigh the costs of purchasing a new one.

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At closing, the buyer signs the loan documents, provides a homeowners insurance policy and delivers the necessary funds to the attorney or other settlement agent. The exact amount, including the balance of the purchase price, closing costs and escrows, is provided to the buyer 24 hours before the closing.

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