Common Finance Terms Car Shoppers Should Know
We know that car shopping can be overwhelming, with unfamiliar language tossed about like it’s everyday jargon. We don’t want anyone to feel that way when they shop at our Nissan dealership, which is why we’ve compiled a list of frequently used finance terms that will help you understand what’s being said when you discuss Nissan finance with our experts.
Interest Rate
Many motorists think a loan’s interest rate is the same as its annual percentage rate, but that’s not the case. When you contact our Lindenhurst, IL Nissan dealership, we’ll explain that your interest rate reflects how much you’ll pay annually to borrow money. As you continue to make more loan payments, less of each payment will go toward interest because the balance of your loan will decrease.
APR
Whereas the interest rate represents what you’ll pay on your loan principal, your annual percentage rate or APR is indicative of the total cost of your vehicle. Your APR accounts for your interest rate, but it also factors in other expenses, such as destination and advertising fees.
Principal
When you secure an auto loan through Zeigler Nissan of Gurnee, your contract will include the loan’s principal. The principal is the amount you borrow to purchase an automobile.
Term
Whether you finance one of our new Nissan models or a pre-owned vehicle, your loan paperwork will mention a term. The term is the length of time your loan will last. A loan’s term is often expressed in months, with 24-, 36-, 48-, 60-, 72-, and 84-month terms being the most common.
Manufacturer’s Suggested Retail Price
The manufacturer’s suggested retail price or MSRP is exactly what its name implies—the price at which a carmaker suggests a dealer sell the related car. The price is often referred to as the “list price” or “sticker price.” While an MSRP is a recommendation, dealers don’t have to abide by a manufacturer’s suggestion. That’s why you might be able to negotiate a final sales price that’s lower than the MSRP.
Offers and Incentives
Put simply, offers and incentives are deals offered by a dealership or its manufacturer. These offers may include a lower interest rate or cash back. In either case, they’re designed to make it more affordable for you to get a vehicle. Look over our Nissan specials today!
If you have any questions about finance terms, talk to our team at Zeigler Nissan of Gurnee today. We’ll be happy to guide you through the purchasing process!