Here is a list of some critical auto finance terminologies you need when searching for a vehicle:
- Default – defaulting on a loan, typically due to a failure to pay as agreed upon in the contract.
- Depreciation – this is the loss of vehicle’s resale value over time as a result of normal wear and tear.
- Destination Charge – To pay for the cost of delivering an automobile from the factory to the dealership. This cost is included in the vehicle’s manufacturer’s suggested retail prices (MSRP).
- Disclosures – This includes information about a Car’s past, such as any repairs that have been made or any issues with its registration.
- Down payment – The amount of money needed to reduce the loan advanced on a car loan.
- Electronic Fund Transfer (EFT) Systems – Transferring money from the bank account to another or to an individual via electronic means. These is the most preferred payment options by many auto dealers.
