Definitions and Explanations
The periodic charge, expressed as a percentage, for the use of credit.
The length of time that it will take to repay the loan. Typical loan terms are 36, 48, 60, or 72+ months. We sometimes have options as long as 144 months. Term length has a larger impact on the monthly payment and the final amount repaid than interest rates.
The amount of money agreed upon by both parties as the selling price of the item for sale.
The up-front cash payment that the buyer makes to reduce the amount borrowed to purchase a car; the difference between the loan amount and the purchase price. A trade-in allowance and/or rebate also may be used as down payment. The down payment helps protect the bank, credit union or finance company in case the borrower defaults on the loan.
The amount a dealership credits you for the used vehicle you provide as partial payment for another vehicle.
A state, county and/or city surcharge added to the cost of certain items sold within a specific geographical area. This is usually a percentage of the total cost of a transaction, anywhere from 3% to 10%. Sales tax can vary greatly from county to county, due to county and/or city surcharges.
Vehicle Registration Fee
A fee charged by the state to legally register the vehicle in that state. Some states charge a flat fee, while others base it on the specific vehicle registered. Also called a licensing fee.
1. O.A.C (On Approval of Credit)
2. Loan terms and interest rates vary from applicant to applicant, and vehicle to vehicle, depending on the applicants credit rating, income and payment history. The year, make, model and mileage of the vehicle being financed. And the down payment.