How a loan works Issaquah WA

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

Evergreen Ford Auto Body
(425) 392-6900
22819 SE 64th
Issaquah, WA
Chevrolet of Issaquah
(425) 427-0101
1601 18th Ave NW
Issaquah, WA
Truck Country
(425) 427-8106
6011 E Lake Sammamish Pkwy
Issaquah, WA
Appleway Automotive Group
(509) 924-6900
10000 E Sprague Ave
Spokane Valley, WA
Robert Larson Automotive Group
(253) 475-3832
7034 S Tacoma Way
Tacoma, WA
Dick Hannah Dealerships
(360) 944-3399
3321 NE Auto Mall Dr
Vancouver, WA
Lithia Chrysler Dodge of Wenatchee
(509) 662-1577
722 N Mission St
Wenatchee, WA
Bellevue Buick Pontiac GMC Truck
(425) 451-2400
620 116th Ave NE
Bellevue, WA
Mallon Ford
(253) 475-4151
3606 S Sprague Ave
Tacoma, WA
Affordable Auto Sales of Snow Valley
(425) 222-0006
33376 Redmond
Fall City, WA

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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

Cooperative Capital

888.654.2667
1423 E. 29th Street, Suite 207
Tacoma, WA
http://www.cooperativecapital.com

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- Negotiate for the Cheapest Auto Loan Issaquah WA
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- Used Car Loans Issaquah WA
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