Don't Let Auto Finance Terms Confuse You

Buying a new car can be very exciting, but it can also be confusing if you’re getting financing and don’t understand all the auto finance terms the dealer or bank uses. Our team at Land Rover of Tacoma would like to help you better understand the financing process. Here are some terms you might hear and what they mean.

• Principal – the amount you need to borrow (car price, registration, taxes)
• Interest – the amount you will pay the bank for borrowing from them
• Payments – the amount you pay each month on the loan
• Term – the number of months you’ll make payments to the bank
• APR – the amount you’ll pay each year in interest
• Blue book – The guidelines used to determine the value of a car
• Money back – the money the bank will you give you back if you get a vehicle from them

If you still have questions, come see us at our Fife dealership. When you’re ready, allow us to finance your next vehicle.

 

 

Categories: Finance