After the long search to find the perfect vehicle to either buy or lease, comes the process of signing paperwork and agreeing on finance terms. To better help you have an understanding of the terms you’ll hear in the finance office, we’ve put together a small list of terms we think everyone should know:
Down Payment – an amount of money that is paid at the time of purchase, opposed to the amount of money you finance.
APR – this is an acronym for “annual percentage rate,” or the percentage of cost of credit expressed as a yearly rate.
Credit Report – A document that showcases your current and past financial situation, but does not include your credit score, which is a separate document.
Lease – A reached agreement between the dealer and leaser to pay a certain amount every month for allotted amount of months, then returning the vehicle back to the dealer.
Extended Service Contract – an optional contract that can protect certain components of a vehicle.
Repossession – A vehicle being taken back after purchase/lease, if the agreed upon payments are not met.
Mileage Limitation – An agreed upon annual mileage limitation for a leased vehicle. Each mile over agreement accrues a charge.
Want to learn even more finance terms? Check out the Federal Trade Commissions website or call us today, and we’ll gladly answer any of your questions!