How a loan works Arlington VA

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

Mercedes and Volvo Motor Cars, Inc
(202) 265-7235
1525 15th St., NW
Washington, DC
Jefferson Leasing
800--532-7352
2127 Espey Ct
Crofton, MD
Mitsubishi Motors
(703) 527-3017
2300 Clarendon Blvd
Arlington, VA
American Service Center
(703) 284-2500
616 N Glebe Rd
Arlington, VA
American Service Center
(703) 243-9655
585 N Glebe Rd
Arlington, VA
Enterprise Rent-A-Car
(703) 684-6660
3100 Jefferson Davis Hwy
Arlington, VA
Brown Arlington Honda
(703) 522-8808
3920 Lee Hy
Arlington, VA
Sheehy Subaru
(703) 922-7900
6727 Loisdale Rd
Arlington, VA
Brown's Arlington Nissan of Arlington
(703) 920-6354
3200 Columbia Pike
Arlington, VA
American Service Center-Mercedes-Benz
(703) 525-2100
585 N Glebe Rd
Arlington, VA

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

Mercedes and Volvo Motor Cars, Inc

(202) 265-7235
1525 15th St., NW
Washington, DC


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