How a loan works Coos Bay OR

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

Honda World
(541) 888-5588
1350 Ocean Blvd NW
Coos Bay, OR
Courtesy Pontiac Buick GMC
(541) 267-7007
175 Ingersoll St
Coos Bay, OR
Verger Chrysler Dodge Plymouth Jeep Inc
(541) 888-5594
1400 Ocean Blvd NW
Coos Bay, OR
Tower Ford
(541) 267-2118
505 S Broadway
Coos Bay, OR
Coos Bay Nissan Inc
(541) 888-2111
1475 Ocean Blvd NW
Coos Bay, OR
Jim Vick Auto Sales
(541) 269-2937
Coos Bay, OR
Coos Bay Toyota
(541) 267-3121
2001 N Bayshore Dr
Coos Bay, OR
Beaverton Infiniti
(503) 626-8822
4425 SW Hall Blvd
Beaverton, OR
Alan Webb Nissan
(503) 230-1490
3608 NE Auto Mall Dr
Portland, OR
Quality West Motors
(503) 985-7640
Gaston, OR

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.
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