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What Is an Auto Loan?

Is it time to put your trusty steed, otherwise known as your car, out to pasture? Then you may be in the market for an auto loan. But before you sign your life away, think about it. Do you know what an auto loan is? And if so, how do you know that this is a good option for you?

Well, an auto loan is basically a loan that you take out in order to purchase a vehicle. With an auto loan, you are not paying on the depreciation of the vehicle like you do with a lease. You are paying on the vehicle purchase price plus interest.

Knowing this, are you still trying to decide if buying a car is right for you? Here are some factors that may help you make your decision.

Buying a vehicle may be right for you if:

  • You have the money to make a significant down payment (20% or more)
  • You would like to be able to trade in your vehicle
  • You want to establish partial equity
  • You prefer to own your vehicle
  • You like to travel and don't want to have to worry about mileage restrictions
  • You are tough on your vehicles and don't want to worry about wear and tear charges
  • You don't need to switch cars every two or three years

Questions on auto loans? Key can help.

If you decide to get a car loan, it's important that you have a clear understanding of the terms. It's also good to weigh all of your options before locking into an agreement. That's where KeyBank can help. A representative from KeyBank can answer any questions that you may have about our auto loan options. Contact us today.

All credit products are subject to credit approval.

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