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Paulding Chrysler Dodge Jeep Ram

1246 Old Griffin Road
Directions Dallas, GA 30157

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Common Finance Terms In Dallas, GA

 


Trying to slog your way through the process of buying a car, but aren't sure what all those financial terms mean? Here's a short list of common words used when discussing things like auto loans and negotiating the cost of a vehicle, so you can go into the dealership without feeling like the sales representatives are speaking a different language.

 

APR

Stands for Annual Percentage Rate. Refers to a calculation of the amount of interest you pay per year as opposed to just the monthly fee. This is calculated based on the loan amount.

 

Base Rate

Also referred to as the sticker price or Manufacturer's Suggested Retail Price (MSRP), this is the retail price of the standard model of a particular vehicle before any available features or packages are added.

 

Closing Costs

Additional fees applied to the purchase price when negotiating the price. This can include costs such as the title and appraisal fees.

 

Credit

Can refer to your credit score, which is calculated based on your financial credit history in order for financial institutions to quantify your reliability in making payments.

 

Down Payment

An amount of money you put toward the total cost of your vehicle. This can reduce monthly payments and the amount owed in return for a loan.

 

Interest

An additional cost incurred when you owe money. You will pay a certain percentage of interest on a loan over time. This is how financial institutions make money off of loans.

 

Loan

Money borrowed from a financial institution. In the case of a car loan, you use it to pay for the total cost of a vehicle and pay it back over time.

 

Term

The length of a loan often referred to in months. If you pay off a loan before the end of a term you may incur financial penalties to prevent the bank from losing money incurred by interest.


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