How a loan works Gettysburg PA

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

Dover Community Motercars Llc
(717) 338-9955
2992 York Rd
Gettysburg, PA
Davidson Motor Company
(717) 334-1399
55 Expedition Trl
Gettysburg, PA
Shealer's Used Auto Sales
(717) 337-2934
2750 York Rd
Gettysburg, PA
Renn Kirby Chevrolet-Buick
(717) 334-9234
791 York Rd
Gettysburg, PA
Dave Martin's Auto & Truck Sales
(717) 334-9717
1607 Hanover Rd
Gettysburg, PA
Bob Ruth Ford Inc
(717) 766-2003
US Route 15
Dillsburg, PA
Anthony D'ambrosio's Dodge Chrysler Jeep
(610) 286-9450
# 345
Elverson, PA
Frederick Chevrolet-Cadillac
(717) 274-1461
1505 Mount Wilson Rd
Lebanon, PA
Markal's Auto Sales
(814) 623-2121
5179 Business 220
Bedford, PA
Waynes Auto Sales
(570) 398-2350
112 Lincoln Ave
Avis, PA

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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

Jefferson Leasing

800--532-7352
2127 Espey Ct
Crofton, MD


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