Familiarize Yourself with Some Common Finance Terms

 

When you’re shopping for a new vehicle, like a 2019 Mitsubishi Outlander Sport, you’re probably going to hear a lot of financial terms that you might not be familiar with. When you’re not sure what something means, it can make it difficult to understand the terms of your car loan or lease package. We want you to have a thorough understanding of your loan or lease, which is why we’re going to explain what some common finance terms mean.

Too many motorists think APR or annual percentage rate and interest rate are the same things. While they sometimes refer to the same number, they don’t always. APR refers to the amount of interest you’ll pay on a car loan over the course of a year. An interest rate refers to the amount you’ll pay over a set period of time, which may or may not be a year. In cases where these two interest rates involve different lengths of time, pay attention to the APR.

Every car loan has a maturity date. This date is the day by which you’ll need to pay off your auto loan. If you fail to settle your loan by the maturity date, you’ll be in default and your lender may repossess your vehicle.

All cars have individual titles or pink slips. When you lease a car, you won’t receive a title because you’ll need to return the vehicle at the end of your contract. If you take out an auto loan to buy an automobile, your lender will send your car’s title to you after you pay off your debt.

Now that you’re familiar with some finance terms, look through our Mitsubishi offers on new Mitsubishi vehicles. Be sure you contact Gillman Mitsubishi with any questions you might have.

Categories: Finance
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