Understanding Your Loan Terms

Finance is one of the most important aspects of getting behind the wheel. Most people who purchase a vehicle do not have the funds just lying around to dole out on a new automobile. However, financing is available at virtually every dealership. The important thing to know are some of the auto financing terms.

The APR (annual percentage rate) is the biggest term that you need to know about. This represents the amount of interest that you will pay on the auto loan in a year. If your APR is 3% then you will pay that amount on the outstanding balance in the course of the year.

Pay attention to other terms that you may see come up when working on auto financing. Many dealerships offer perks like cash back or 0% interest for a set period of time. These are gimmicks in a sense, but they are worth paying attention to in order to see what the real sticker price is of your vehicle.

 

 

Categories: Finance
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