How a loan works Evanston IL

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

Autobarn Oldsmobile-Volkswagen
(847) 864-0064
1001 Chicago Ave
Evanston, IL
Evanston Nissan
(847) 869-5700
715 Chicago Ave
Evanston, IL
Autobarn Ltd Volkswagen Mazda Chrysler Jeep
(847) 866-7600
1012 Chicago Ave
Evanston, IL
Martin Auto Sales
(847) 866-7413
2131 Darrow Ave
Evanston, IL
E F Stains Inc
(847) 359-9700
143 E Lake Cook Rd
Palatine, IL
Champion Dodge and Chrysler of Barrington
(847) 382-5400
505 W Northwest Hwy
Barrington, IL
Muller's Highland Park Chevrolet Honda
(847) 831-4200
550 Skokie Valley Rd
Highland Park, IL
Montell Chevrolet
(773) 584-6000
4530 S Archer Ave
Chicago, IL
Delorean Motor Company Midwest
(815) 459-6439
Crystal Lake, IL
Ward Chrysler Center
(618) 529-5972
1412 W Main St
Carbondale, IL

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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