How a loan works Southfield MI

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

Tamaroff Buick Honda Isuzu Nissan
(248) 353-1300
28585 Telegraph Rd
Southfield, MI
Art Moran Buick-Pontiac-GMC
(248) 353-9000
29300 Telegraph Rd
Southfield, MI
Glassman Oldsmobile-Saab-Hyundai-Kia Inc
(248) 354-3301
28000 Telegraph Rd
Southfield, MI
Saturn of Southfield
(248) 354-6001
29929 Telegraph Rd
Southfield, MI
Detroit Hummer Inc
(248) 352-7199
21535 Telegraph Rd
Southfield, MI
Tamaroff Buick & Honda
(248) 355-3570
28585 Telegraph Rd
Southfield, MI
Avis Ford Inc
(248) 355-7500
29200 Telegraph Rd
Southfield, MI
Meade Lexus of Southfield
(248) 372-7100
28300 Northwestern Hwy
Southfield, MI
Avis Ford Body Shop
(248) 799-8914
21377 Telegraph Rd
Southfield, MI
Page Toyota Inc
(248) 352-8580
21262 Telegraph Rd
Southfield, MI

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
- Auto Loan Payment Calculator Southfield MI
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.
- Auto Leasing Pros and Cons Southfield MI
- Car Finance Southfield MI
- Lowering Auto Finance Costs Southfield MI
- Credit Score and Buying a Car Southfield MI
- Car Financing Southfield MI
- Used Car Loans Southfield MI
- Car Loans Southfield MI
- Car Leasing Or Car Buying Southfield MI
- Negotiate for the Cheapest Auto Loan Southfield MI
Related Articles
- Auto Loan Payment Calculator Southfield MI
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.
- Auto Leasing Pros and Cons Southfield MI
- Car Finance Southfield MI
- Lowering Auto Finance Costs Southfield MI
- Credit Score and Buying a Car Southfield MI
- Car Financing Southfield MI
- Used Car Loans Southfield MI
- Car Loans Southfield MI
- Car Leasing Or Car Buying Southfield MI
- Negotiate for the Cheapest Auto Loan Southfield MI

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