How a loan works North Wilkesboro NC

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

Yadkin Valley Motor Company Inc
(336) 838-4155
1422 2nd St
North Wilkesboro, NC
Heritage Motors
(336) 667-6462
1132 Airport Rd
North Wilkesboro, NC
Victory Toyota Inc
(336) 667-1185
1502 W D St
North Wilkesboro, NC
Pearl's Auto Sales
(336) 838-1122
504 Elkin Hwy
North Wilkesboro, NC
Rock Creek Auto Sales
(336) 696-4111
675 Rock Creek Rd
North Wilkesboro, NC
Steve's Muffler Shop
(336) 838-0093
416 Main St
North Wilkesboro, NC
Transport Sales Inc
(704) 921-9545
8311 Statesville Rd
North Wilkesboro, NC
Bob King Buick-Pontiac-GMC Inc
(910) 793-2464
Wilmington, NC
Chrysler
(336) 789-8105
1944 Rockford St
Mount Airy, NC
Carolina Volkswagen
(704) 537-2336
7800 E Independence Blvd
Charlotte, NC

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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.

Featured Local Company

Keith Hawthorne Mazda

(704)-923-1958
2275 E. Franklin Blvd.
gastonia, NC


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