How a loan works Columbia SC

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

Hyundai
(803) 799-1234
310 Greystone Blvd
Columbia, SC
Pulliam Ford
(803) 254-4000
2800 Two Notch Rd
Columbia, SC
Morris Gene Co
(803) 419-9000
7201 Parklane Rd
Columbia, SC
Able's Auto Sales
(803) 765-1775
1105 Anthony Ave
Columbia, SC
Family Auto Centers
(803) 376-5000
4250 W Beltline Blvd
Columbia, SC
Family and Friends Car Sales Llc
(803) 771-7373
2500 N MAI St
Columbia, SC
Carolina International Trucks Inc
(803) 799-4923
1619 Bluff Rd
Columbia, SC
Pontiac
(803) 783-0110
7201 Garners Ferry Rd
Columbia, SC
South Carolina Automobile Dealers Assn
(803) 254-4040
1517 Laurel St
Columbia, SC
Hampton Jaguar
(803) 750-4800
3700 Fernandina Rd
Columbia, SC

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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

City Chevrolet Company

(704) 536-1410
5101 East Independence Boulevard
Charlotte, NC

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- Negotiate for the Cheapest Auto Loan Columbia SC
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.
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- Auto Leasing Pros and Cons Columbia SC
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