How a loan works Pottsville PA

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

Weaver Bob Chevrolet Co
(570) 622-7191
2174 W Market St
Pottsville, PA
West End Motor Co
(570) 622-4433
Potsvl-St Clair Hwy
Pottsville, PA
East Penn Truck Parts & Service
(570) 622-4433
Pottsville, PA
K Auto Sales
(570) 622-8849
Mill Creek Ave
Pottsville, PA
Hi Point Auto Sales
(570) 385-7070
43 Mengle St
Pottsville, PA
Sands Ford Suzuki of Pottsville
(570) 622-1991
RR 61
Pottsville, PA
Guardian Auto Sales
(570) 385-3470
22 Beckville Rd
Pottsville, PA
North Penn Vw-Mazda
(215) 822-2736
RR 309
Colmar, PA
Keystone Ford
(717) 597-2103
301 S Antrim Way
Greencastle, PA
Classy Chassis Auto Sales the
(814) 563-7772
Matthews Run Rd
Youngsville, PA

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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

Sloane Honda

215-305-5000
9903 Bustleton Ave
Philadelphia, PA

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