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How a loan works Indiana

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

Thorntown Truck and Auto
(765) 436-2172
222 E Plum St
Thorntown, IN

Country Chevrolet-Oldsmobile-Cadillac
(574) 936-2115
2705 N Michigan St
Plymouth, IN

Barry Bunker Chevrolet-Cadillac Inc
(765) 664-1275
1307 N Wabash Ave
Marion, IN

Carson Motors
(765) 795-8050
Cloverdale, IN

Expressway Ford Mercury
(812) 831-3100
3800 Highway 62 E
Mount Vernon, IN

Byrne Motors Inc
(812) 385-5277
331 W Broadway St
Princeton, IN

Lockhart Automotive Group
(317) 865-1551
1287 US Highway 31 N
Greenwood, IN

Easy Guy Auto Sales
(317) 543-0680
8320 Pendleton Pike Apt A
Indianapolis, IN

Wright's Auto Sales
(812) 738-8498
4595 Highway 135 NE
Corydon, IN

Hendrickson Enterprise
(812) 897-4090
3144 W State Route 62
Boonville, IN

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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.

Read more about How a loan works

- Credit Score and Buying a Car Indiana

Check your credit report and know your credit score before you buy a car. If you're planning on financing your car with an auto loan, it's useful to know your credit score so you get the best interest rate.

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Regional Articles

- How a loan works Anderson IN
- How a loan works Angola IN
- How a loan works Bedford IN
- How a loan works Bloomington IN
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- How a loan works Brownsburg IN
- How a loan works Carmel IN
- How a loan works Chesterton IN
- How a loan works Columbia City IN
- How a loan works Columbus IN
- How a loan works Connersville IN
- How a loan works Crawfordsville IN
- How a loan works Crown Point IN
- How a loan works Dyer IN
- How a loan works East Chicago IN
- How a loan works Elkhart IN
- How a loan works Evansville IN
- How a loan works Fishers IN
- How a loan works Fort Wayne IN
- How a loan works Franklin IN
- How a loan works Gary IN
- How a loan works Goshen IN
- How a loan works Granger IN
- How a loan works Greenfield IN
- How a loan works Greenwood IN
- How a loan works Hammond IN
- How a loan works Hobart IN
- How a loan works Huntington IN
- How a loan works Indianapolis IN
- How a loan works Jeffersonville IN
- How a loan works Kendallville IN
- How a loan works Kokomo IN
- How a loan works Lafayette IN
- How a loan works Laporte IN
- How a loan works Logansport IN
- How a loan works Marion IN
- How a loan works Martinsville IN
- How a loan works Merrillville IN
- How a loan works Michigan City IN
- How a loan works Mishawaka IN
- How a loan works Muncie IN
- How a loan works Munster IN
- How a loan works New Albany IN
- How a loan works New Castle IN
- How a loan works Newburgh IN
- How a loan works Noblesville IN
- How a loan works North Vernon IN
- How a loan works Peru IN
- How a loan works Portage IN
- How a loan works Richmond IN
- How a loan works Schererville IN
- How a loan works Seymour IN
- How a loan works Shelbyville IN
- How a loan works South Bend IN
- How a loan works Terre Haute IN
- How a loan works Valparaiso IN
- How a loan works Vincennes IN
- How a loan works Wabash IN
- How a loan works Warsaw IN
- How a loan works West Lafayette IN
- How a loan works Zionsville IN

- Auto Loan Payment Calculator Indiana

Every person does have different dreams and happiness. Some dream of having a three storey house, some would want to own a business, have a tour around the world, be the CEO of the biggest firm in the country and most would be dreaming of a new car; something working well though not too fancy.

- Credit Score and Buying a Car Indiana
- Auto Leasing Pros and Cons Indiana
- Car Leasing Or Car Buying Indiana
- Negotiate for the Cheapest Auto Loan Indiana
- Lowering Auto Finance Costs Indiana
- Car Loans Indiana
- Car Financing Indiana
- Used Car Loans Indiana
- Car Finance Indiana

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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