Finance Terms Explained in Allentown, PA

Discussing financing is usually the part of the car-buying process that most people dread.  Though with the right help and a few basics, Mazda finance discussions become straightforward and stress-free. Whether you’re new to the world of car financing or would like to brush up on a few financing terms, we’ve put together a short guide to help explain common financing terms.

MAZDA Finance Terms

Financial agreement: When you purchase or lease a Mazda vehicle, you will sign a financial agreement. The agreement will include items such as the total loan amount, the repayment period, interest rate, and if any rebates apply.

Interest rate: When you borrow money from a bank or a financial institution, there will usually be a fee. The interest rate, expressed as a percentage, is that fee. It is calculated as a proportion of the total loan amount and based on your credit score. The higher your credit score, the lower your interest rate.

Credit Score: A credit score is a number that rates your creditworthiness. Many factors affect your credit score, such as the amount of debt, repayment history, and the number of open accounts.

Down payment: The amount of money you can pay upfront towards your purchase or lease agreement.

Trade-In: If you would like to “trade” the value of your old vehicle for a new one, you are trading it in. Usually, your old vehicle will not be the same value as your new one, but it will help cut down on the cost of your new purchase or lease agreement.  You can even get a trade-in estimate online at Scott Mazda.

Equity: The difference between what you owe and what the car is worth. As you pay off your loan, you build equity.

When the time comes to sit down and discuss your financing options, the team of dedicated financial experts at our Mazda dealership will walk you through each section of the financial agreement and ensure all of your questions are answered. Rest assured, we’ll work with you to find a financing agreement that works best for your budget.

We offer many helpful tools on our website, including a tool to value your trade-in and to help you estimate your monthly payment amounts. You can even fill out a finance application via our secure portal.  We also offer an online payment calculator so you can get an idea of what you can afford before you even step foot in our dealership.  Our online Mazda financial services take much of the headache out of car buying.

Get Expert Mazda Financial Services at Scott Mazda in Allentown

Ready to get started? Stop by your Mazda dealer in PA, in Allentown, PA, and our team will help you with all of your Mazda car needs. Whether you are researching your next family vehicle, such as the Mazda CX-9 , or have questions about interest rates, you can always expect personalized and friendly Mazda financial services at Scott Mazda. We hope to see you soon!