Mar 18, 2020
When the time comes to purchase a 2020 Buick Encore, we want you to be as prepared as possible. This means knowing the ins and outs of the buying process and what all of the technical terms mean.
Our team at Peruzzi Buick GMC looks forward to working with you through this experience and getting you behind the wheel of a new Buick car today.
Common Finance Terms
Buying a car is one of the most expensive investments you’ll make in your lifetime, which is why the financing process can be overwhelming. Our finance specialists will do their best to define each term when you visit our showroom, but it may be helpful to learn some before your visit.
- Finance: When you finance a car, you are borrowing money with a loan to buy it. Once your loan is paid off, the car is all yours.
- Interest: There is a fee that comes along with borrowing money and it’s called interest. This cost comes in the form of a percentage and the amount is dependent on your credit score as well as other factors.
- Down payment: A down payment, or money down, is the amount of money that you put towards the total cost of the car. If you trade in your current car, you may include that amount toward this payment. The more you put down, the lower your monthly arrangement will be.
- Equity: The difference between how much your GMC truck is worth and what you owe is called equity. It’s important to have equity when trading in. If you owe more than the car is worth, you have what is called negative equity.
We invite you to visit our Fairless, PA car dealers today to find a vehicle that meets your needs and works with your budget. Stop by soon!
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