How a loan works Logan UT

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

Department of Motor Vehicles
(435) 716-7110
179 N Main St
Logan, UT
Davis Auto Center-Chrysler Jeep Dodge
(435) 752-0050
2900 N Main St
Logan, UT
Utah Carzz
(435) 752-4050
1938 N Main St
Logan, UT
Ensign Toyota-Honda
(435) 752-5636
1945 N Main St
Logan, UT
One Stop Auto Sales
(435) 752-7867
1818 N Main St
Logan, UT
Deloy Elder Insurance
(435) 752-3211
3006 N Main St
Logan, UT
Axtell-Taylor GM
(435) 752-6801
1955 N Main St
Logan, UT
Murdock Hyundai Logan
(435) 787-0040
3131 N Main St
Logan, UT
Truckpro Leasing
(801) 956-2600
2240 S 5370 W
Salt Lake City, UT
Western Star Trucks-Sales Parts & Service
(801) 886-4740
2167 S 5370 W
Salt Lake City, UT

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

Mercedez-Benz of Lindon

(801) 222-4400
530 S. Lindon Park Drive
Lindon, UT

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