Common Auto Financing Terms

Looking to finance a new vehicle for the first time? Then you might want to look over our list of common auto financing terms, which will help you understand and navigate your way through financing your new purchase.

APR

The APR, or annual percentage rate, is the interest charged on a loan per year.

Cosigner

People with no credit or poor credit will be able to get better loan agreements if they have a cosigner, which is a second individual who agrees to sign on a loan, taking on equal responsibility in paying it back.

Credit

Credit is a term that refers to a person’s credit history, which includes everything from whether or not previous payments have been made on time, to how many years of experience a person has with borrowing money. A lender looks at a borrower’s credit to decide whether they’re able to pay back a potential loan.

Down Payment

A down payment is a payment that a buyer makes upfront on a vehicle, in order to reduce the amount of the loan that they need.

MSRP

The Manufacturer’s Suggested Retail Price is the base price suggested to dealers by the manufacturer. This price generally increases depending on the trim level and any extras and amenities added to the vehicle.

If you have more questions about financing, contact the team of experts here at Courtesy Chevy Buick GMC Cadillac.