How a loan works New Hampshire

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

Nashua Mitsubishi
(603) 888-8080
140 Daniel Webster Hwy
Nashua, NH
Profile Motors Inc
(603) 447-3361
Rts 16 & 112
Conway, NH
Peter's Auto Sales
(603) 886-9300
Nashua, NH
Salem Ford Hyundai
(603) 898-9766
470 S Broadway
Salem, NH
Lovering Volvo of Nashua
(603) 888-7070
180 Daniel Webster Hwy
Nashua, NH
Silver Street Auto Sales & Repair
(603) 668-1704
325B Silver St
Manchester, NH
Second Car Auto Sales of Hooksett
(603) 666-3030
1377 Hooksett Rd
Hooksett, NH
Volvo of Keene
(603) 354-5000
591 Monadnock Hwy
Swanzey, NH
Bournival Group
(603) 433-9266
2458 Lafayette Rd
Portsmouth, NH
Merchants Rent-A-Car
(603) 893-4534
69 S Broadway
Salem, NH

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.
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