Common Finance Terms

Financing a car can be a challenge, especially if you're a first time buyer. While most automakers have some sort of program to help first time buyers, it's helpful to know some terms as well. Keeping track of the conversation can help you make the best choice when it comes to an auto loan. Don't get a bad loan because you don't understand! Knowledge is power so here's a few terms to get you on the right track!

  • Loan Terms - There are three types of loans: standard (60 months), short (36 to 48 months), and long (72 to 84 months). Short term loans will have a higher monthly payment while long terms will have a lower monthly payment. Standard term loans fall right in the middle.
  • APR - Your annual percentage rate (APR) is how much interest is charged per year for the loan. In most cases, the total is determined at the start of the loan so you pay the whole amount whether you pay off the loan early or on time.
  • Credit Score - Your credit score, or credit history, is a number between 350 and 850 that determines how risky of a borrower you are. The higher your score, the more likely you are to be approved for loans.

If you don't understand something, ask someone in the finance department. Everyone here at Swant Graber Motors will be happy to assist you in choosing your vehicle and the right financing for you.