If you are like most people, you will finance your automobile purchase by getting a loan from a bank, credit union, or financing companies. Getting a loan is a good way to afford a better car from MINI of Burlington in Shelburne, VT, but it also is a complicated process. You will be likely to get a better deal if you have a good understanding of auto finance terms.
The annual percentage rate is an important term to understand. This is the annual interest rate charged and may differ from the rate you are quoted on the entire loan. Using the APR helps you to more accurately compare different loan options.
The term of your loan is another good auto finance term to understand. With most auto loans, you have anywhere from three to six years to pay the money back. Shorter loans mean higher monthly payments, but they also mean you pay less overall because the interest costs are lower.
