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
Power Pontiac Buick GMC Scottsdale
(480) 994-9451
6640 E McDowell Rd
Scottsdale, AZ
Cholo's Auto Sales
(520) 805-1696
540 E 8th St
Douglas, AZ
Jones Suzuki
(480) 425-7771
707 N Scottsdale Rd
Scottsdale, AZ
Pete's Rv
(480) 380-3667
8102 E Main St
Mesa, AZ
Peoria Kia
(623) 933-6900
17431 N 91st Ave
Peoria, AZ
Grubb Lou Chevrolet-Camelback
(602) 242-5555
Phoenix, AZ
Oldsmobile Authorized Dealer
(480) 898-6000
470 S Alma School Rd
Mesa, AZ

provided by:
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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- Car Leasing Or Car Buying Safford AZ
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