If you’re thinking about purchasing a new car, truck, or SUV at Ourisman Chrysler Dodge Jeep® RAM of Bowie, it might be a good idea to brush up on some finance terms before you visit our friendly financial experts. By knowing some of these basic finance terms, you’ll not only be able to communicate your needs, but you’ll also be fully prepared for each step of the car financing process. After all, buying a car can be quite stressful, so knowing these will allow you to focus on what matters most.
Common Finance Terms Explained
Before you head into our dealership to find a deal on your next vehicle, expand your finance knowledge by learning these terms:
- Credit history: This is an official record of your previous borrowing history. This information tells dealers how well you’ll be able to pay back your loans.
- Finance: This broad term involves borrowing funds from a bank in order to gain ownership of a new, used, or certified pre-owned vehicle.
- Interest rate: This refers to how much interest you pay when you borrow money for your car loan. This fee is usually expressed as a percentage of the sum you initially borrowed.
- Term: This refers to your specified repayment schedule shown as a certain length of time. For example, you may have a 24- or 72-month loan term.
- Down payment: This is the first payment you make in order to secure your vehicle.
If you need further elaboration on these terms or other parts of the financing process, feel free to visit us and sit down with one of our experts in our finance center who will help you understand everything clearly. We hope to see you at our car dealership near Crofton, MD soon!