Whether you are deciding on a new or used vehicle, you’ll likely obtain an auto loan to finance it. When you finance, there will be some key terms that will be important to keep in mind when you decide to obtain financing from Truck Town in Bremerton, WA.
The Down Payment
When your financing requires a down payment, you are paying money that goes toward the vehicle price you’re paying. The more the down payment is, the less the total amount will be remaining for payment. Generally speaking, a down payment may need to be at least 10% when you finance a used vehicle and 20% for a new vehicle.
The Interest Rate
When you have an amount financed, you will also see an interest rate along with it. This interest rate will be a certain percentage that is based on your credit and will be included as part of your monthly payments. So each payment you make, the amount goes towards the loan balance and the interest.
The APR
Also known as the annual percentage rate, the APR is a yearly charge that is applied to a financed amount. The APR includes all fees and charges and gives an estimate of what the entire cost of a vehicle will be.