The process of buying or leasing a vehicle can be very intimidating. You have to pick the right one for your lifestyle and then, when you do, it’s almost as if the finance department is speaking a different language to you about your loan. Mitchell Mazda is here to help you understand some of the terms that go along with purchasing a vehicle to make the process less stressful on you.
APR "Annual Percentage Rate" – Yearly interest rate on a loan including fees.
Blue Book – Also known as Kelley Blue Book, it’s the industry’s guide for dealers used to estimate wholesale and retail vehicle pricing.
Co-signer – Assumes equal responsibility for the contract/loan.
Credit Score – Used to decide the interest rate and whether or not you are approved for the loan. The number reflexes your credit risk, meaning the better your credit history the higher the score.
Depreciation – The reduction of an asset’s (car’s) cost overtime due to use, normal wear and tear, or accidents. Significant cost of the car but not all cars depreciate at the same time.
Extended Warranty or Service Contract – Contracts that cover certain car repairs/problems after the manufacturer’s warranty expires. For most new cars this must be purchased by the end of the first year.
Rebate – An incentive to buyers as a reduction on the price for the car. Great for first time buyers or buyers with no credit.
We hope that the next time you buy a car it will be all about driving off in the car of your dreams and less stressing about terms on the financing documents. If you ever have any questions about financing feel free to reach out to our Finance Department or your trusted Salesperson.