How a loan works Athens 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

Larry Schey Chevrolet Inc
(740) 593-6671
750 E State St
Athens, OH
Don Wood Buick-Pontiac-Cadillac-GMC Truck Co Inc
(740) 593-6641
900 E State St
Athens, OH
Taylor Team Chrysler Plymouth Dodge Jeep Nissan Honda
(740) 594-8555
250 Columbus Rd
Athens, OH
Don Wood Toyota
(740) 594-2906
900 E State St
Athens, OH
Laurence's Towing & Equipment Sales
(419) 884-0006
2540 Lexington Ave
Mansfield, OH
Germain Chevrolet
(614) 471-8282
3101 Morse Rd
Columbus, OH
Yark Automotive Group
(419) 841-7770
Sylvania, OH
Hunter's Chrysler Dodge Jeep
(740) 947-2400
215 W Emmitt Ave
Waverly, OH
S & J Auto Sales
(740) 689-2900
420 Lincoln Ave
Lancaster, OH
Classic Nissan
(330) 422-7300
885 Classic Dr
Streetsboro, OH

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2007 Volvo XC70
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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

Caldwell Leasing

Caldwell Leasing offers professional services in fleet management.

419.564.1256
1888 Morse Road
Columbus, OH
http://www.caldwellleasing.com

Caldwell Leasing has been providing fleet services in Ohio for more than 45 years, customizing leasing programs to fit your specific needs. Our professional staff can help free up your cash flow and let your talents work best for you and your business. We have a network of fleet dealers around the country and can order vehicles at the most competitive pricing, passing those savings to you in lower monthly payments.

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Related Articles
- Negotiate for the Cheapest Auto Loan Athens OH
Are you looking for cheap auto loans? If you are, this article will provide you with three tips on how to negotiate for the best deal on an auto loan so you can get on your way to car ownership.
- Car Loans Athens OH
- Used Car Loans Athens OH
- Lowering Auto Finance Costs Athens OH
- Car Leasing Or Car Buying Athens OH
- Car Financing Athens OH
- Credit Score and Buying a Car Athens OH
- Car Finance Athens OH
- Auto Leasing Pros and Cons Athens OH
- Auto Loan Payment Calculator Athens OH

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