Base Price Also referred to as the Manufacturer’s Retail Price (MSRP) or sticker price, this is the cost of the vehicle before incentives, negotiations, or extra accessories and available features.
Interest This is the cost you pay for borrowing money. As you pay back a loan, you will also be paying an interest rate that is a percentage of the loan added on. This is how financial institutions make money off of loans.
Annual Percentage Rate (APR)
While interest is often calculated as a monthly percentage, the annual percentage rate of APR will show you how much you are paying per year.
Lease Rather than buying a new vehicle, dealerships allow some customers to lease, which involves a contract that specifies a restricted time frame that you may temporarily “own” the vehicle and the number of miles you may drive the vehicle.
Trade-In Value This is the amount of money you would receive if you traded your vehicle into a dealership, which you could then put towards the down payment on a new vehicle.
Credit Score This is a 3-digit number that represents your credit history, which shows financial institutions such as bank whether or not you’re a reliable investment when you apply for a loan.
Title A legal document containing information regarding the vehicle and ownership. The title will be in the lender’s name until you pay off your loan.
This is an additional charge applied to the agreed-upon price of a vehicle to cover the costs of transporting the car from the factory to the dealership.
Prepayment Charge If you pay off your loan before the agreed-upon end date, you will be charged an additional prepayment penalty to make up for the money the bank is losing in interest.
If you have any questions about financing a vehicle, contact us at (866) 238-6219 or visit Pollard Used Cars in Amarillo, TX and we can help you get you into a vehicle that fits into your budget. Let us help you get the finance process started today!