When it comes to buying a new car, there are a lot of terms thrown around. It can become confusing knowing what is what, and what terms mean the most to you. We have compiled a short list of some commonly used finance terms that will hopefully help you out when in the car buying process.
Credit History - Credit history is simply a record of your debt payments and debts that you still owe. We will work with all types of credit whether good or bad.
Co-Signer - If you don’t have an established credit history, oftentimes a co-signer will come into play. A co-signer is someone who will sign their name on the loan agreement as well, taking partial responsibility to help you obtain financing.
Leasing vs. Buying - Choosing whether to lease or buy a car can be confusing. If you’re looking to have a new car every couple of years, have a potential smaller down payment, and have your car loan based on the car’s residual value, leasing a car would be the better option. However, if you want to own the car and see benefits of not having a car payment at the end of your loan, as well as having no mileage restrictions and the ability to customize the car to your liking, buying would be in your best interest.
Financing - Financing is simply obtaining money/credit through a lender. It can be directly from a bank or credit union, or through a third party like dealerships.
Interest Rate - Interest is the cost of borrowing money from a lender. Interest rate is a predetermined rate that will be added on to the initial loan. Rates will depend upon multiple variables including credit and the lender.
Rebates - Rebates are a great way to save money on purchasing a new car! Oftentimes, we offer refunds or pack back on our vehicles and Ford specials and incentives are always available. Talk with your salesman or our financing department to learn about rebates you qualify for.
Here at Shults Ford - Harmarville, we work hard to make the car buying process as easy as we can! For more information about obtaining financing, whether to lease or buy your next car, or determining if you need a co-signer, visit us or give us a call at (412) 828-2300.