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SpanishOur Glossary to the Most Important Auto Financing Terms
Financing a car can be stressful. Unscrupulous dealers can throw a lot of jargon out at buyers in an attempt to intimidate them into making mistakes that will work to the dealer’s benefit. At Indy Car Financing, we want our customers to understand what’s being said to them so that they can make the best decisions for their financial situation and walk away with a deal they feel good about. We’ve prepared this car finance dictionary for our Speedway buyers to help them do just that.
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Understanding the following terms will help you to avoid being taken advantage of when you buy your next new or used car:
- Bad Credit Auto Financing – Financing for high-risk buyers who have poor credit ratings which may include late payments, bankruptcies, or repossessions.
- Equity – The dollar amount your vehicle is worth after the loan amount is deducted.
- Finance Charge – The amount of interest that the lender will charge you over the loan term.
- Finance Loan – A loan with a specific term that will pay the total cost of the vehicle, giving the buyer full ownership when the last payment is made.
- Incentives – An incentive is any enticement, including cash rebates, low interest rates, or extras that are offered to the buyer in exchange for the purchase of a particular vehicle.
- Lease – A program that allows drivers to make set payments for a fixed period of time in order to drive a vehicle. At the end of the term, the lessee turns the car back over to the leasing company.
- Rebates – A set amount of money offered to a buyer for the purchase of a particular vehicle.
- Sub-Prime Loan – An auto loan made to a high-risk buyer with a poor credit rating.
- Title Loan – A loan that allows you to borrow against the equity in your vehicle. The lender gives you cash based on your equity, and maintains ownership of the vehicle until the loan is paid in full.
- Trade-In Value – The value of your current vehicle, which can be applied towards the cost of a new vehicle purchase.
Indy Car Financing Can Help You Find the Right Loan Without All the Jargon
Along with our comprehensive car finance dictionary, we guarantee that you’ll have a jargon-free buying experience when you stop by Indy Car Financing’s Speedway Chevrolet location at 5252 W 38th St in Indianapolis. Our counselors can help you work through any credit situation to help you finance a car purchase at a rate that makes sense for your budget. Feel free to contact us online or by phone at (855) 468-6215 for help with any questions.