Common Automotive Financing Terms

Buying a new vehicle can be exciting. However, you have to get the business side of things out of the way before you drive off the lot. It's important to know what various financing terms mean so that you can effectively communicate with your lender and make an informed purchasing decision.

First, let's talk about the down payment. A down payment is what you will be paying during the signing process. The amount of your down payment will directly affect how much you need to finance and how much your monthly payments will be. Another important term to remember is APR, or annual percentage rate. During the life of your auto loan, interest will accrue. The APR represents how much interest you'll pay each year.

Stop by Honda of Stevens Creek if you're looking to purchase a new vehicle. We have a dedicated financing department that can help you find an option that works for you.



Categories: Finance

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