If you are new to purchasing a car or just haven’t been to the dealership in several years, please take some time to brush up on common financing terms you might encounter during the process. But don’t worry: If we start discussing any specific terminology that you don’t recognize during your experience at Pischke Motors Nissan, we’ll be happy to explain what it means. After all, it’s not often that you buy a new car! Here are some of the most common terms:
APR: APR, which stands for Annual Percentage Rate, is the interest that you will pay if you take out a car loan to finance your purchase. The lower your credit score, the lower the APR we can likely offer. A lower APR is great because that means you’ll pay less interest over the life of your loan.
Blue Book Value: Kelley Blue Book (KBB) offers a tool that helps you figure out what your trade-in is likely worth before you bring it to the dealership. This is called the Blue Book Value.
Credit Score: This number represents how good you are at managing credit—making on time payments and balancing multiple lines. The higher your score, the better deals financial institutions will be able to offer you on your car loan.
Down Payment: The down payment is the amount of cash (or check) that you pay on the day of purchase. The more you pay upfront, the lower your monthly payments will be. Also keep in mind that, if you pay more, that’s less money to pay interest on in the long run.
Lease: If you decide to lease a vehicle, you will drive it for a set number of years then return it to the dealership. In this way, it’s like renting a car.
MSRP: The Manufacturer’s Suggested Retail Price is the amount that the car is suggested to be sold for by the automaker (in this case, Nissan).