Deciding on a new car to buy can be difficult, but understanding your financial options when negotiating can be even worse. Save yourself from the headache—and possible disaster—of getting lost in financial jargon by studying some of the most common terminology. Here are need-to-know definitions.
APR: The annual percentage rate, or how much interest you will pay on a loan averaged over the loan term.
Buyout Price: The price you would pay for a vehicle if you choose to fully buy it after leasing (borrowing) it for a contracted period.
Contract: The official set of documents that bind you and the dealership to an agreement on the vehicle.
Depreciation: The difference between the initial cost of the car and its residual value after a given period of time.
Down Payment: The amount of money a customer owes upfront to buy or lease a vehicle.
Equity: The value of your car, usually compared to how much you still owe on it.
Interest: The finance charge associated with your loan, usually expressed as a percentage.
Lease: When a dealership lends a car to a person for a negotiated period of time and amount of money.
MSRP: The price at which the manufacturer suggests the dealership should sell a new car.
Pre-Approval: Acceptance by a financial firm for a certain loan amount before you purchase the car.
Title: The document proving ownership of a vehicle.
Don't worry if you are still feeling a little bit foggy on all of this information. That's exactly what the James Ceranti Nissan Finance Department is for! Stop by- we'll be happy to answer any questions that you may have!