Budget Car and Truck Sales knows that some buyers aren't fully acquainted with auto finance terminology. Therefore, here are a few terms to familiarize yourself with before visiting our dealership near Columbus, GA.
Annual Percentage Rate (APR)
APR is perhaps the most understood terminology, but it is also one of the most important. In a nutshell, APR represents how much you will pay annually to borrow money from the lender. It includes the interest and fees associated with your loan.
Base Price
The term "base price" reflects the purchase price of the car you're buying. However, it does not include any add-ons, such as upgrades or optional equipment that you choose. Typically, the base price is lower than the actual purchase price.
Co-Signer
A co-signer is someone who agrees to become legally responsible for the remaining balance if you default on the auto loan. In most cases, when a buyer cannot qualify for the loan based on their creditworthiness or income, they use a co-signer.
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