At VALLEY IMPORTS MITSUBISHI, we understand that applying for automotive financing can seem intimidating. The jargon used in loan and lease applications can seem quite confusing. To help make the process easier to navigate, we've put together some common auto finance terminology you should know. Having a basic understanding of these terms will help to make you an informed and confident consumer.
Whether you want to buy or lease, it's a good idea to know your credit score. A credit score is an indicator of your credit worthiness. If you have past credit issues or are new to obtaining credit, you may require a co-signer to secure financing. This person takes responsibility for making your payments if you are unable to do so.
You're sure to come across the term APR. This stands for Annual Percentage Rate and is the yearly interest rate, expressed as a percent, that you will pay on your loan, including fees and expenses.