#1 Volume Subaru Dealership in the Central U.S.
When you buy a new car, it can be exciting, but it can also be scary. Especially when there's a bunch of finance terms you'll need to know. So if you're buying a car, here are a few terms to have on hand.
This refers to the specific amount of interest you'll pay on a loan yearly, determined at the time you get the loan from the dealer or bank.
The loan term refers to the length of time you have to pay off your loan. There are both short- and long-term loans: short-term which will give you bigger monthly payments, and long-term loans which will give you smaller monthly payments.
This is a number that tells a bank or dealer your potential credit risk when you borrow money from them. You'll need to know this to obtain a loan or determine lease payments.
This is the amount of money you'll have to pay at the signing of your loan or lease to take home your car. It's typically 10% - 20% of the overall cost of the car.
This is a sticker that's required to be on the car window. It includes the base price, manufacturer's installed options (with the manufacturer's suggested retail price), destination charge, and fuel economy.
This stands for Manufacturer's Suggested Retail Price, which is the suggested retail price for a vehicle. The dealership can determine their price off of this price.
This is the amount of money in total that's borrowed for a loan.
This is the price a dealer will offer you for your old car that you can put towards your new car.
There are many reasons why you may want to buy, or lease, your next car. Whatever you do, it's not a decision to be taken lightly, since there is so much money and a serious time commitment at hand. ...Read more!