How a loan works Escondido CA

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

Young Buick Pontiac Cadillac
(760) 745-4820
1515 Auto Park Way
Escondido, CA
Jack Powell Chrysler-Dodge Inc
(760) 745-2880
1625 Auto S Park Way
Escondido, CA
Equipment Wholesale Inc
(760) 489-6333
2213 Meyers Ave
Escondido, CA
Quality Chevrolet Commercial Division
(760) 796-4278
534 N Citracado Pkwy
Escondido, CA
Target Auto Sales Inc.
(760) 738-4900
1155 Industrial Ave
Escondido, CA
Majjaan Auto Sales
(760) 738-9977
1010 W Mission Ave
Escondido, CA
Audi Escondido
(760) 520-6600
1560 Auto Park Way N
Escondido, CA
Mossy Nissan
(858) 271-4170
1551 Auto Park Way N
Escondido, CA
Rush Peterbilt Truck Centers
(760) 796-4090
1620 Mission Rd
Escondido, CA
Sunset Motors
(760) 747-3888
515 W 4th Ave
Escondido, CA

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.

Featured Local Company

EXECUTIVE FLEET LEASING

7145473011
2202 E. 1st St.
Anaheim, CA

Related Articles
- Car Loans Escondido CA
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.
- Credit Score and Buying a Car Escondido CA
- Car Leasing Or Car Buying Escondido CA
- Lowering Auto Finance Costs Escondido CA
- Car Finance Escondido CA
- Auto Leasing Pros and Cons Escondido CA
- Used Car Loans Escondido CA
- Car Financing Escondido CA
- Auto Loan Payment Calculator Escondido CA
- Negotiate for the Cheapest Auto Loan Escondido CA
Related Articles
- Car Loans Escondido CA
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.
- Credit Score and Buying a Car Escondido CA
- Car Leasing Or Car Buying Escondido CA
- Lowering Auto Finance Costs Escondido CA
- Car Finance Escondido CA
- Auto Leasing Pros and Cons Escondido CA
- Used Car Loans Escondido CA
- Car Financing Escondido CA
- Auto Loan Payment Calculator Escondido CA
- Negotiate for the Cheapest Auto Loan Escondido CA

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History