How a loan works Harrisonburg VA

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

Steven
(540) 432-3363
2970 S Main St
Harrisonburg, VA
Highway Motors Inc
(540) 434-6716
3185 N Valley Pike
Harrisonburg, VA
Don & Chuck's Auto Sales
(540) 434-4555
1820 S High St
Harrisonburg, VA
Dept of Moter Vehicles
(540) 438-1677
Harrisonburg, VA
Steven Toyota
(540) 433-8473
22 Southgate Ct
Harrisonburg, VA
Saturn of Harrisonburg
(540) 437-7577
2465 E Market St
Harrisonburg, VA
Truck Enterprises Inc
(540) 564-6900
3440 S Main St
Harrisonburg, VA
Nissan
(540) 564-1111
2275 E Market St
Harrisonburg, VA
Harrisonburg Honda
(540) 433-1467
2885 S Main St
Harrisonburg, VA
Chelvy's Auto Sales Llc
(540) 564-9630
1021 Edom Rd
Harrisonburg, VA

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

BMW of Sterling

(571) 434-1944
21826 Pacific Blvd.
Washington, DC

Rate Article
     
Articles Insider

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