How a loan works Atlantic City NJ

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

Kerbeck Automotive Group
(609) 344-2100
Atlantic City, NJ
Mercedes-Benz Authorized Sales & Service
(609) 645-9000
7020 Black Horse Pike
Atlantic City, NJ
Kerbeck Cadillac
(609) 345-2100
430 N Albany Ave
Atlantic City, NJ
Kemp Auto Sales
(609) 347-0676
1601 Boardwalk
Atlantic City, NJ
Dch Kay Honda
(732) 542-5901
200 State Route 36
Eatontown, NJ
All Brands Nissan Auto Sales
(201) 489-6330
400 River St
Hackensack, NJ
Aby Auto Sales
(908) 469-1190
451 Spring St
Elizabeth, NJ
Metro Honda
(201) 451-7111
540 State Rt 440
Jersey City, NJ
46 Mitsubishi
(973) 256-1200
440 US Highway 46
Totowa, NJ
Lynnes Nissan West
(973) 347-7573
59 US Highway 206
Stanhope, NJ

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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

Sloane Honda

215-305-5000
9903 Bustleton Ave
Philadelphia, PA

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- Car Loans Atlantic City NJ
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.
- Auto Leasing Pros and Cons Atlantic City NJ
- Credit Score and Buying a Car Atlantic City NJ
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