Finance Terms You Should Know


Finance Terms to Know

 

Are you getting ready to buy or lease a new car, but are worried about understanding all the financial lingo that goes into negotiating prices and loans? Don't worry -- just look over this list for a brief lesson in auto finance 101. Also keep in mind, if you are confused about anything during negotiations, ask! The dealership is there to help you, after all.

 

Additional Products or Services - Any products or services that the dealer may offer in addition to the sale, lease, or financing, such as guaranteed auto protection or credit insurance.

 

Annual Percentage Rate (APR) - Also called a Finance Rate, this is the interest charged on a loan, expressed as a percentage.

 

Assignee - The financial institution that buys the contract from the dealer.

 

Credit Report - A document detailing your credit history, including information on where you live, how you pay your bills, whether you have filed for bankruptcy in the past, and whether or not you have ever been sued.

 

Credit Score - Using information in your credit report, you are assigned a three-digit number called a credit score denoting how high- or low-risk of an investment you are. The higher your credit score, the more likely you are to be approved for a loan.

 

Down Payment - The amount of money you pay upfront when buying a car, which in turn reduces the amount of money you owe in monthly car loan payments.

 

Finance Charge - The cost of credit expressed as a dollar amount.

 

Negotiated Price of the Vehicle - Different from the MSRP, this is simply the price agreed on by the customer and the dealership while negotiating the total cost of the vehicle. This price will also include any discounts, rebates, or special offers applied to your transaction.

Just stop on by Pegues Hurst Ford if you have any questions surrounding your automotive financing needs


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