How a loan works Hillsboro OR

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

Syd Dorn's Vehicle Buyer's Service
(503)643-4585
15422 SW Gibraltar Court
Portland, OR
Sunset Imports
(503)641-8600
4050 S.W. 139th Way
Beaverton, OR
Jim Fisher Volvo
(503)295-5571
2108 W. Burnside
Portland, OR
Freeman Motor Company
503-310-5555
7524 SW Macadam Avenue
Portland, OR
ShrewdLease.com
503 969 3544
4332 harvey way
lake oswego, OR
Wentworth Chevrolet Subaru
(503)232-2000
107 S.E. Grand Avenue
Portland, OR
Scooter Street
503-232-0885
534 Belmont Avenue
Portland, OR
Thomas Auto Sales
(503) 640-6874
1425 SE Tualatin Valley Hwy
Hillsboro, OR
Royal Moore
(503) 640-5660
Hillsboro, OR
National Car Rental
(503) 648-3213
1380 SE River Rd
Hillsboro, OR

provided by:
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

Syd Dorn's Vehicle Buyer's Service

(503)643-4585
15422 SW Gibraltar Court
Portland, OR


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