How a loan works Akron OH

When you purchase a vehicle with a loan, a bank or other financial institution pays for most or all of the vehicle up-front, and you agree to pay back the money over time.

Local Companies

Burt Greenwald Chevrolet Inc
(330) 867-3010
1490 Vernon Odom Blvd
Akron, OH
Dave Walter Inc
(330) 762-3646
500 W Exchange St
Akron, OH
Esec Corp
(330) 794-9304
1650 E Waterloo Rd
Akron, OH
Marhofer Auto Family
(330) 929-7000
1260 S Main St
Akron, OH
Marhofer Auto Family
(330) 644-3500
3360 S Arlington Rd
Akron, OH
Park Honda
(330) 644-7820
951 Interstate Pkwy
Akron, OH
Marhofer Auto Family
(330) 923-5262
1260 S Main St
Akron, OH
Marhofer Auto Family
(330) 928-5980
1260 S Main St
Akron, OH
Montrose Toyota
(330) 836-2500
1501 Vernon Odom Blvd
Akron, OH
Marhofer Auto Family
(330) 644-3500
3360 S Arlington Rd
Akron, OH

provided by:
2007 Volvo XC70
(Continue to more photos from MyRide.com)


 



Understanding Loans



When you purchase a vehicle with a loan, a bank or other financial institution pays for most or all of the vehicle up-front, and you agree to pay back the money over time. The amount of money you borrow from the bank is referred to as the "principal." The amount of money you contribute up-front is referred to as the "down payment" and usually varies from 10% to 20% of the purchase price of the vehicle. You can often purchase a new car without a down payment (if you qualify); used vehicles generally require a 20% or more down payment.



The payback period for a loan is typically up to five years, although some newer vehicles are being sold with longer-term loans. The financial institution will charge you "interest" for your use of their money. Interest rates vary depending on a number of factors such as your credit rating and where you live. Currently, new car loan rates start at around 8.5%, with used car rates about a percentage point higher. Manufacturers frequently offer lower loan rates as a purchasing incentive, but sometimes these are attached to conditions that may not work for you. Make sure you ask enough questions to make yourself comfortable when investigating various loan options.



 




Key features of loans




The primary features of loans are summarized below. Make sure you review our articles on leases and the differences between loans and leases before making a final decision.



 




  • You have ownership and equity in the vehicle. Your monthly payments are working to purchase that car and it's yours to sell or keep as long as you wish.



  • Gives you control over your vehicle.

Featured Local Company

Federal Servicing, LLC

724-658-5687
930-2 Cass St
New Castle, PA
www.federalservicing.com

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Financing a car is a dream, which not everyone can afford due to involvement of high investments. The reason may be of either limited income or insufficient savings. And due to these reasons the people keep their dreams on hold.
- Used Car Loans Akron OH
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