Auto Finance Terms - Wantagh, NY
Anyone who has bought a vehicle knows that financing can be one of the most complicated parts. To gain a better understanding of the financing process, Hassett Pre-Owned has collected a list of common finance terms you should know.
Annual Percentage Rate (APR)
APR is the annual cost of the credit you use to buy a vehicle. This number can sometimes be negotiated, but is affected by things like your credit score and the current market.
This is a number that is calculated by a service like FICO by using an algorithm that factors in things like payment history and the amount of credit you have. This number gives lenders an idea of how likely you are to pay on your loans.
This is the initial payment that you make on a vehicle. The bigger the down payment, the less money you’ll have to finance over time.
Fixed Rate Financing
With fixed rate financing, the financing rate remains consistent throughout the life of a contract.
Guaranteed Auto Protection (GAP)
This coverage protects you from the loss you would sustain if your vehicle is severely damaged or stolen before you have finished paying it off.
This is the portion of your payment that is beyond a vehicle’s market value.
Hassett Pre-Owned is your local dealership for pre-owned Ford, Lincoln, Mercury, and Subaru vehicles. Stop in today and talk with our finance professionals if you have any questions! We're located at 3530 Sunrise Highway in Wantagh, New York 11793.