How a loan works Missouri

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

Enterprise Rent-A-Car
(913) 383-1515
5359 Merriam Dr
Kansas City, MO
Payless Car Rental
(816) 464-2100
Payless Car Rental
Kansas City, MO
Hertz Local Edition
(816) 474-4970
1 E. Pershing Rd
Kansas City, MO
Plaza Motor Company
(314) 301-1701
Saint Louis, MO
Wiethop Truck Sales Inc
(573) 334-5258
Cape Girardeau, MO
Churchill Bob Buick Pontiac Cadillac Chevrolet GMC Trucks Inc
(573) 333-2828
300 W 3rd St
Caruthersvlle, MO
Neal Kenny Ford Inc
(417) 548-3341
Bus Loop I-44
Sarcoxie, MO
Barreth Ford Center
(636) 583-1378
Union, MO
Saturn of Cape
(573) 335-4001
374 Siemers Dr
Cape Girardeau, MO
Lindburg Cadillac Co
(314) 821-0700
9833 Watson Rd
Saint Louis, MO

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

Enterprise Rent-A-Car

9133831515
5359 Merriam Dr
Kansas City, MO

Related Articles
Related Articles

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
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