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How a loan works South Carolina

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

Seven Stars Auto Sales Inc
(864) 295-5776
4700 White Horse Rd
Greenville, SC

Toyota of Orangeburg
(803) 536-4512
645 Broughton St
Orangeburg, SC

Dick Brooks Honda
(864) 877-1772
Greer, SC

McCalla Auto Sales
(864) 223-8880
1102 McCormick Hwy
Greenwood, SC

Bailey Vic Ford
(864) 585-3600
501 E Daniel Morgan Ave
Spartanburg, SC

Raceway Automotive Group
(843) 393-5000
701 S Governor Williams Hw
Darlington, SC

O'neal's Auto Sales
(843) 393-9507
1324 Lamar Hwy
Darlington, SC

Ford & Mercury Sales Service & Parts
(843) 549-5581
902 Bells Hwy
Walterboro, SC

Bilton Behr Chevrolet Inc
(803) 496-5872
7611 Old State Rd
Holly Hill, SC

Fairey Motor Company
(803) 254-1713
2885 Saint Matthews Rd
Orangeburg, SC

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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.

Read more about How a loan works

- Auto Loan Payment Calculator South Carolina

Every person does have different dreams and happiness. Some dream of having a three storey house, some would want to own a business, have a tour around the world, be the CEO of the biggest firm in the country and most would be dreaming of a new car; something working well though not too fancy.

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Regional Articles

- How a loan works Aiken SC
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- How a loan works Clover SC
- How a loan works Columbia SC
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- How a loan works Darlington SC
- How a loan works Dillon SC
- How a loan works Easley SC
- How a loan works Florence SC
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- How a loan works Fountain Inn SC
- How a loan works Gaffney SC
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- How a loan works Goose Creek SC
- How a loan works Greenville SC
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- How a loan works Hartsville SC
- How a loan works Hilton Head Island SC
- How a loan works Inman SC
- How a loan works Irmo SC
- How a loan works Ladson SC
- How a loan works Lancaster SC
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- How a loan works Lexington SC
- How a loan works Manning SC
- How a loan works Moncks Corner SC
- How a loan works Mount Pleasant SC
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- How a loan works Myrtle Beach SC
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- How a loan works North Charleston SC
- How a loan works Orangeburg SC
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- How a loan works Summerville SC
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- How a loan works Walterboro SC
- How a loan works West Columbia SC

- Auto Loan Payment Calculator South Carolina

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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