How a loan works Shawnee KS

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

Enterprise Rent-A-Car
(913) 383-1515
5359 Merriam Dr
Kansas City, MO
superior toyota
913-789-4421
8400 shawnee mission parkway
merriam, KS
Hertz Local Edition
(816) 474-4970
1 E. Pershing Rd
Kansas City, MO
Payless Car Rental
(816) 464-2100
Payless Car Rental
Kansas City, MO
Mullen Coach Llc
(913) 262-4040
3702 Merriam Dr
Shawnee, KS
Harms Trucking
(913) 384-0810
5049 Merriam Dr
Shawnee, KS
Mike Steven Auto Group
(316) 652-2111
7127 E Kellogg Dr
Wichita, KS
George Motor Co
(785) 446-3340
319 Washington St
Clyde, KS
Joe Self Chevrolet Cadillac Bmw
(316) 689-4390
8801 E Kellogg Dr
Wichita, KS
Saturn of Topeka
(785) 266-4585
3731 SW Topeka Blvd
Topeka, KS

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.

Featured Local Company

Enterprise Rent-A-Car

9133831515
5359 Merriam Dr
Kansas City, MO


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