Purchasing a vehicle is an exciting experience, but the finance process can feel complex for many. If you're feeling intimidated by the finance process, don't be. We're going to share a few common auto finance terminologies to give you the confidence as you pursue your auto loan. 

5 Common Auto Finance Terms

  1. Amortization: An amortization is the repayment of a loan by installments. It consists of regular payments that includes the interest and principal balance.
  2. Amount Financed: This is the credit the lender is willing to provide you as the borrower.
  3. APR: Also known as annual percentage rate, this is a yearly rate of interest that includes all fees and expenses paid to acquire the loan. 
  4. Certificate of Title: A document issued by your state to provide evidence of motor vehicle ownership.
  5. Credit History: A record of a person's paid and unpaid debts. This enables lenders to see whether an applicant has a good history of repaying debts.
Categories: Finance