How a loan works Maryville TN

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

Airport Cadillac
(865) 970-2960
3203 Alcoa Hwy
Maryville, TN
Patriot Auto Sales
(865) 856-6856
4907 US Highway 411 S
Maryville, TN
Morgan Bobby Auto Sales
(931) 762-6547
1111 N Locust Ave
Lawrenceburg, TN
Graham Ford L-M Inc
(615) 446-2308
1717 Highway 46 S
Dickson, TN
Fineline Carriers Inc
(615) 449-9955
1031 Tennessee Blvd
Lebanon, TN
Gatton Bill
(423) 282-2493
2909 N Roan St
Johnson City, TN
Farris Motor Company
(423) 587-2071
246 E Broadway Blvd
Jefferson City, TN
Jennings Motors
(615) 563-2323
112 N Tatum St
Woodbury, TN
Duke Auto Sales
(615) 742-0024
2633 Nolensville Pike
Nashville, TN
T & T Auto Sales Number 2
(423) 245-9922
1130 S Wilcox Dr
Kingsport, TN

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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

Paul Teryl

(706) 745-2002
5724 Dills Rd. Extension
Blairsville, GA


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