An intimidated look on the face of someone who steps in our doors is not an uncommon sight here in our city. We understand that a lot of customers are nervous about making an auto purchase and the potential to not get a good deal on their behalf. Thus, we strongly encourage everyone who purchases from us here at Concord Honda to do some research before coming in the door. Today, we want to provide an overview of some of the basic terms that any buyer should know before buying.
- APR - This stands for "Annual Percentage Rate" and it is one of the most important terms in the game. It relates to how much in interest an individual will pay on their purchase in percentage terms over the course of the year. The lower the rate, the more money the buyer is saving.
- Creditor - In a financing deal, the creditor is the institution that provides the funding for the customer to make their purchase in the first place.
- Down Payment- This is a sum of money that the buyer pays on the day they purchase the vehicle. A larger down payment means less paid out in interest through financing.
These are just three of the terms that anyone may hear thrown around when they do business with an auto dealership. We hope that this brief explanation of these terms will help you understand what you are getting into when you finance a vehicle. We strongly encourage you to finance it directly through us so that we may be able to guide you through these terms as much as you need.
Categories:
Finance
