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Sales: (317) 272-1000
Service: (317) 272-1000
8693 East US Highway 36 Avon, IN 46123
Terms to Know When Buying or Leasing a Car
There are few things more satisfying than driving off the lot in a new car! There are a few steps before getting to that point though. After you decide on a car you can afford, you have to go through the financing step. This step can be long and grueling for some buyers but it will be much easier if you know some automotive finance terms!
Blue Book – Also known as Blue Book Value, this is the value of a vehicle, new or used, based on information from a website such as Kelley Blue Book.
Creditor – The financing institution that is giving you the loan for the vehicle.
Credit – A reference to your credit history, this helps creditors decide whether or not you have the ability to repay the loan.
Balloon Payment – A large payment at the end of the auto loan, this will ultimately lower monthly payments.
Finance Charge – Also known as interest charges, this is how much interest will accumulate over the course of the auto loan.
Grace Period – The period of time after a payment due date in which you won’t be charged a penalty fee.
Interest Rate – Better known as Annual Percentage Rate, this determines your annual interest rate during the life of the auto loan.