How a loan works Elmira NY

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

Kent Brown Toyota
(607) 796-9600
951 County Road 64
Elmira, NY
Beam Mack Sales & Service
(607) 767-4260
3050 Lake Rd
Elmira, NY
Hampton's Dodge Chrysler Jeep
(607) 733-9108
2463 Corning Rd
Elmira, NY
Simmons Rockwell Buick Pontiac GMC Cadillac
(607) 796-5555
784 County Road 64
Elmira, NY
Elmira Specialty Auto Inc
(607) 734-8166
1458 Maple Ave
Elmira, NY
Island Ford Service Number
(718) 494-1095
2385 Richmond Ave
Staten Island, NY
Daniel's Cadillac Pontiac GMC Truck
(315) 789-6722
844 Canandaigua Rd
Geneva, NY
Valley Stream Chevrolet
(516) 285-5460
691 W Merrick Rd
Valley Stream, NY
George's Auto & Truck Re
(718) 531-7277
8214 Foster Ave
Brooklyn, NY
Dorschel Automotive Group the
(585) 334-9440
3817 W Henrietta Rd
Rochester, NY

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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

Bradford Auto Service

8143684328
58 W. Washington Street
Bradford,, PA


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