Some Common Auto Finance Terms

When it is time to purchase a new vehicle, you will probably need to get a loan in order to be able to buy the car. Sometimes, all of the terminology surrounding auto financing can be a bit confusing. Knowing what some common terms mean will help a lot.

Most dealerships will want a down payment. This is the amount of money that you must pay upfront for a vehicle. The amount of the down payment is deducted from the purchase price, and the remaining amount is what is financed. APR stands for annual percentage rate. This is the amount of interest you will pay annually on the loan. The rate is higher for those with poorer credit scores.

These are just a couple of common auto finance terms. For more information, contact Lakewood Happy Motors. The finance department will be happy to help you set up financing for your new vehicle.



Categories: Finance