Buying or leasing a car is one of the biggest financial decisions many people make in their lives. Unfortunately, it can sometimes get bogged down in technical jargon. At Parks Select we want everyone to be on an equal playing field. So before you show up at the dealership, here are a few common finance terms you should know about:
• APR - Short for "annual percentage rate," APR is the cost of credit when expressed at a yearly rate, which can be negotiated.
• Credit Report - The document that expresses your financial situation and past. This does not include your credit score, though it is somewhat related.
• Down Payment - The amount of money you pay up front to help reduce the amount you finance.
• Lease - An arrangement in which the leaser agrees to pay a certain amount every month for a specified period of time, after which they will return the vehicle to the dealership. Cheaper than buying a car, but with limitations. • Mileage Limit - The annual mileage limit for a leased vehicle.
• Repossession - When your vehicle is taken back from you after missing too many payments.
Visit the Federal Trade Commission's website for even more common finance terms