How a loan works Pullman WA

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

Pullman Ford-Mercury
(509) 334-6000
2590 S Grand Ave
Pullman, WA
Truck Shop the
(253) 852-3827
Kent, WA
Husky Truck Center
(206) 764-3833
11222 E Marginal Way S
Tukwila, WA
All Star Toyota
(206) 366-3100
13355 Lake City Way NE
Seattle, WA
Car City
(206) 542-8692
17550 Aurora Ave N
Shoreline, WA
Custom Auto Craft
(360) 385-0188
2553 Cape George Rd
Port Townsend, WA
Factoria Truck Rental & Leasing
(425) 644-7596
13306 SE 30th St
Bellevue, WA
Kenworth Truck Company Renton Manufacturing Factory
(425) 227-5800
1601 N 8th St
Renton, WA
Ponderosa Nissan Outlet
(509) 962-8866
1433 W University Way
Ellensburg, WA
Slowik Motors
(360) 675-3300
530 NE Midway Blvd
Oak Harbor, WA

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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.
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Related Articles
- Negotiate for the Cheapest Auto Loan Pullman WA
Are you looking for cheap auto loans? If you are, this article will provide you with three tips on how to negotiate for the best deal on an auto loan so you can get on your way to car ownership.
- Lowering Auto Finance Costs Pullman WA
- Auto Loan Payment Calculator Pullman WA
- Credit Score and Buying a Car Pullman WA
- Car Loans Pullman WA
- Car Finance Pullman WA
- Used Car Loans Pullman WA
- Car Leasing Or Car Buying Pullman WA
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