How a loan works Louisiana

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

Golden Motors Inc
(985) 325-1050
Galliano, LA
Dick Barker Lincoln - Mercury - Mazda
(985) 876-5333
1100 W Tunnel Blvd
Houma, LA
Bohn Don Ford-Buick-Pontiac-GMC
(504) 347-7117
3737 Lapalco Blvd
Harvey, LA
Golden Motors Inc
(985) 325-1050
Galliano, LA
Lapeyrouse Chevrolet Dodge Jeep Chrysler
(337) 276-4540
1105 Main St
Jeanerette, LA
Coleman's Auto Sales
(225) 358-3008
6163 Airline Hwy
Baton Rouge, LA
Johnson J C Ford Lincoln Mercury Inc
(318) 377-8694
405 Industrial Dr
Minden, LA
Southland Dodge Chrysler Inc
(985) 876-1817
Houma, LA
Sam's Auto Sales
(318) 226-2855
2405 Youree Dr
Shreveport, LA
All Star Auto Sales
(337) 896-2353
101 Apache Cir
Carencro, LA

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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.
Regional Articles
- How a loan works Abbeville LA
- How a loan works Alexandria LA
- How a loan works Baker LA
- How a loan works Bastrop LA
- How a loan works Baton Rouge LA
- How a loan works Bogalusa LA
- How a loan works Bossier City LA
- How a loan works Breaux Bridge LA
- How a loan works Carencro LA
- How a loan works Chalmette LA
- How a loan works Covington LA
- How a loan works Crowley LA
- How a loan works Denham Springs LA
- How a loan works Deridder LA
- How a loan works Eunice LA
- How a loan works Franklinton LA
- How a loan works Gonzales LA
- How a loan works Gretna LA
- How a loan works Hammond LA
- How a loan works Harvey LA
- How a loan works Haughton LA
- How a loan works Houma LA
- How a loan works Jennings LA
- How a loan works Kenner LA
- How a loan works La Place LA
- How a loan works Lafayette LA
- How a loan works Lake Charles LA
- How a loan works Leesville LA
- How a loan works Mandeville LA
- How a loan works Marrero LA
- How a loan works Metairie LA
- How a loan works Minden LA
- How a loan works Monroe LA
- How a loan works Morgan City LA
- How a loan works Natchitoches LA
- How a loan works New Iberia LA
- How a loan works New Orleans LA
- How a loan works Opelousas LA
- How a loan works Pineville LA
- How a loan works Plaquemine LA
- How a loan works Ponchatoula LA
- How a loan works Prairieville LA
- How a loan works Rayne LA
- How a loan works Ruston LA
- How a loan works Saint Martinville LA
- How a loan works Shreveport LA
- How a loan works Slidell LA
- How a loan works Sulphur LA
- How a loan works Thibodaux LA
- How a loan works Ville Platte LA
- How a loan works Walker LA
- How a loan works West Monroe LA
- How a loan works Westwego LA
- How a loan works Zachary LA
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