How a loan works Puyallup 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

Cooperative Capital
888.654.2667
1423 E. 29th Street, Suite 207
Tacoma, WA
Korum's Puyallup Nissan
(253) 848-4507
101 Valley Ave NW
Puyallup, WA
Toyota of Puyallup
(253) 286-6000
1400 River Rd
Puyallup, WA
Saturn of Puyallup
(253) 840-6300
720 River Rd
Puyallup, WA
Larson Dodge
(253) 845-1725
300 River Rd
Puyallup, WA
Larson Dodge
(253) 838-3078
300 River Rd
Puyallup, WA
Buick Sales & Service
(253) 845-8881
400 Valley Ave NE
Puyallup, WA
Westcoast Auto Sales
(253) 539-9220
8910 Canyon Rd E
Puyallup, WA
Milam Jeep Mazda-Service Dept
(253) 770-5278
Puyallup, WA
R & T Motors
(253) 926-2602
6112 River Rd E
Puyallup, WA

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.

Featured Local Company

Cooperative Capital

888.654.2667
1423 E. 29th Street, Suite 207
Tacoma, WA
http://www.cooperativecapital.com

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- Car Leasing Or Car Buying Puyallup WA
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