How a loan works Overland Park KS

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
superior toyota
913-789-4421
8400 shawnee mission parkway
merriam, KS
Hertz Local Edition
(816) 474-4970
1 E. Pershing Rd
Kansas City, MO
Franklin Auto Group
(913) 323-3020
4400 W 109th St
Overland Park, KS
K C Auto Sales
(913) 381-1025
7877 Mastin Dr
Overland Park, KS
Morse Chevrolet
(913) 649-6000
9201 Metcalf Ave
Overland Park, KS
Mullen Superior Coach Co
(913) 268-0303
11805 W 62nd St
Overland Park, KS
Superior Acura
(913) 648-5888
Overland Park, KS
McCarthy Dodge
(913) 642-4600
10700 Metcalf Ave
Overland Park, KS
Ots Incorporated
(913) 492-2932
PO Box 40245
Overland Park, KS

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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

Enterprise Rent-A-Car

9133831515
5359 Merriam Dr
Kansas City, MO


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