How a loan works Safford AZ

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

Hatch Brothers Auto Center
(928) 428-6000
1623 W Thatcher Blvd
Safford, AZ
Kempton Chevrolet-Buick
(928) 428-0252
715 W 5th St
Safford, AZ
Johnson Motors
(928) 428-0140
804 S 1st Ave
Safford, AZ
Sky Harbor Auto Sales
(602) 244-2424
2246 E Van Buren St
Phoenix, AZ
Big Two Toyota-Mitsubishi
(480) 898-6031
1120 W Main St
Mesa, AZ
Earnhardt Nissan
(480) 981-3331
6354 E Test Dr
Mesa, AZ
Autocap
(602) 468-9719
4701 N 24th St Ste B3
Phoenix, AZ
Trucks Only
(602) 971-7177
3102 E Bell Rd
Phoenix, AZ
Power Chevrolet On Camelback Rd
(602) 242-5555
2646 W Camelback Rd & I-17
Phoenix, AZ
Berge Volkswagen
(480) 833-0001
385 W Baseline Rd
Gilbert, AZ

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.
Related Articles
Related Articles
Rate Article
     
Articles Insider

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History