Auto financing can seem like a different language all on its own. Here are some of the more common terms that people in the industry use to discuss vehicle finance.
An abbreviation for “Annual Percentage Rate,” this referstothe amount of interest owners will pay on a loan over the course of a year.
The entry-level cost of a vehicle at the lowest trim level and without any additional features.
An extra fee addedonto the price of the vehicle that covers the cost of shipping it from the manufacturer to the dealership.
A sticker on a vehicle that details the base price, the MSRP and installed options, fuel economy, and destination charge in order to provide potential buyers with full information on the vehicle.
A price-reduction incentive for buyers that most often appeals to either first-time buyers who don’t have cash for a down payment or buyers with low credit.
A legal document containing information on a vehicle that serves as proof of ownership and is used to transfer ownership of the vehicle to others.
The amount of cash value a dealership will credit you after you have traded in a used vehicle to use as payment towards a new vehicle.
With these common financing terms, you can go into the car-buying process armed with more knowledge about purchasing a vehicle.