How a loan works Rockingham 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

Griffin Suzuki
(910) 997-7811
1780 E Broad Ave
Rockingham, NC
Dieffenbach Chevrolet-Olds-Cadillac-Mazda
(910) 997-2501
1209 E Broad Ave
Rockingham, NC
John Boy Nissan
(910) 997-5516
1786 E Broad Ave
Rockingham, NC
Jep Atkinson Auto & Truck Sales
(910) 582-5824
773 E US Highway 74
Rockingham, NC
Champion Ford Lincoln Mercury Inc
(910) 582-8383
706 E US Highway 74
Rockingham, NC
Legendary Ford-Mercury Inc
(828) 652-2010
Highway 70 & 221 Wes
Marion, NC
Flow Mazda of Fayetteville
(910) 860-9300
1945 Skibo Rd
Fayetteville, NC
Mark Jacobson Toyota
(919) 493-5599
4513 Durham Chapel Hill B
Durham, NC
Burlington Lincoln Mercury
(336) 275-5592
Greensboro, NC
Fair Bluff Ford-Mercury
(910) 649-7531
658 Main St
Fair Bluff, 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

City Chevrolet Company

(704) 536-1410
5101 East Independence Boulevard
Charlotte, NC

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