Understanding Common Auto Finance Terms

Terms like annual percentage rate and trade-in value are common in the auto finance industry. Industry jargon often keeps consumers away from trying to find affordable financing for a vehicle. Although the jargon is extensive and confusing, it is not impossible to look past all the fancy-sounding terms and find the financing you need to buy your next car.

​To help you with your vehicle purchase, here are some key terms you should understand.
  • Annual Percentage Rate- The interest lenders charge, including the cost to finance your vehicle.
  • MSRP- Manufacturer's suggested retail price. This is the price suggested to dealers by the manufacturer.
  • Dealer Financing- This defines when you obtain your financing to buy a car through car dealers.
  • Interest Rate Cap- This is the maximum interest rate lenders can charge you.
  • Default- When you miss a series of payments (usually three consecutive payments), your loan goes into default status.
Schedule an appointment with BILL HOLT MITSUBISHI to discuss your financing options.

 

 

Categories: Finance

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