Just like you, our Bremerton, WA Truck Town team members love the thrill of a new vehicle purchase. Just like you, auto finance terms often baffle us. What do they mean? We grapple with come common auto finance terms below.

Auto Loan Amortization

With an amortized auto loan, your initial loan payments mostly cover the interest. As the loan gets older, your monthly payments slowly start to cover more of the loan principal as opposed to the interest. Amortization helps keep your loan payments lower and at a consistent amount from month to month until the end of your loan term.

Loan Maturity Date

The loan maturity date is the date by which your loan must be paid. The number of months the lender gives you to pay off your auto loan is called the loan term. With lease financing, terms of 25 to 36 months are common. When obtaining a loan to buy a vehicle, loan terms range from 60 to 96 months.