Do you have plans to get one of the new Mazda cars in our showroom, or has one of our pre-owned models captured your interest? Whether you want to get a new or new-to-you vehicle, you may overhear some finance terms you’re not familiar with. It’s important for you to understand everything clearly when you’re discussing financing so we thought it would be a good idea to explain some common finance terms.
Leasing and financing are two terms you’re almost guaranteed to hear when you’re shopping for a new automobile at our Allentown, PA Mazda dealership. If you lease a vehicle, you’re basically renting it for a set number of months. When that time period expires, you’ll return your car to our location. If you finance an automobile, you’ll take out a loan to buy it. Once you pay off your loan, you’ll own your car and you can keep it for however long you choose to.
Here are some additional financing terms:
- Term: The term is the length of time your loan will remain in force.
- Down payment: Your down payment is the amount you’ll put down when you buy or lease an automobile. The larger your down payment is, the lower your monthly payments will be.
- Depreciation: This term refers to the value a car will lose over time. Vehicles typically depreciate faster when they’re new.
- Title: A car’s title is held by the entity that owns the vehicle. If you finance a vehicle, you’ll receive your title after you settle your auto loan. When you lease an automobile, the dealership will retain possession of the car’s title no matter how many monthly payments you make.
If you have a question about another finance term, contact Scott Mazda or visit our convenient location today!
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