Here at Sunset Cadillac of Bradenton, we want your car buying experience to be stress-free. We understand that sometimes auto financing can be confusing. That's why we've put together a helpful list of common finance terminology you should know.
First, your lender will look at your credit score in order to determine the risk involved in giving you a loan. Credit bureaus arrive at this score by looking at such factors as your overall debt, how many accounts you have open, and your payment history. If you've had credit issues or don't have any credit, you may need a co-signer. This person agrees to pay your loan if you do not.
You'll also want to be aware of the interest rate on your loan. Interest is the amount you're charged for borrowing money. A related term is APR, or annual percentage rate. This is also written as a percentage and is the total yearly amount you're charged to borrow, plus all fees.
