Understanding Auto Finance

Making the decision to purchase a new vehicle is a big one that shouldn't be taken lightly. We want you to make an informed purchasing decision, so here are some basic financing terms you need to know before you sign on the dotted line.

First, let's talk about APR, or annual percentage rate. As the name implies, this term refers to the amount of interest you'll be paying on your loan each year. With a higher APR, you'll be paying much more in the long run.

Other terms that are often confusing to first-time buyers is creditor, credit, and credit line. The creditor is the company that is lending you money to purchase the vehicle. This could be the dealership, a bank, or a credit union. Credit refers to your ability to borrow money from the creditor. Most lenders use your credit score to determine if you have good or bad credit. Finally, a credit line refers to the amount of money offered to you for your vehicle purchase.

Finance your next purchase at Century BMW. Our financing team is dedicated to serving your needs.

 

 

Categories: Finance
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