How a loan works Brandon FL

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

Andy's Paradise Auto Sales
(813) 654-5355
420 E Brandon Blvd
Brandon, FL
James Rivard Pontiac GMC
(813) 626-2093
9740 Adamo Dr E
Brandon, FL
Saturn of Brandon
(813) 651-0887
11024 Causeway Blvd
Brandon, FL
Ed Morse Cadillac-Brandon
(813) 661-0887
11020 Causeway Blvd
Brandon, FL
Coast To Coast Auto Sales
(813) 655-9207
Brandon, FL
Courtesy Chrysler Jeep
(813) 685-4511
1728 W Brandon Blvd
Brandon, FL
National Auto Traders Inc
(954) 783-7500
940 S Dixie Hwy W
Pompano Beach, FL
R & P Auto Sales Inc
(772) 567-7177
6886 Old Dixie Hwy
Vero Beach, FL
Bill Seidle's Mitsubishi Inc
(305) 633-8000
2900 NW 36th St
Miami, FL
Eagle Buick Pontiac GMC Truck Inc
(352) 795-6800
1275 S Suncoast Blvd
Homosassa, FL

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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

Lexus of Clearwater

(727) 726-6000
27547 US Hwy 19 N
Clearwater, FL


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