Chevrolet Financing Terms for First-Time Buyers
If you’re shopping for a new or pre-owned Chevy automobile, it’s natural to feel apprehensive about Chevrolet financing. Lots of car shoppers, even veterans, find the process a little intimidating. When you shop at Clark Chevrolet, though, you won’t need to worry. We take pride in being a dealership where you can put all your worries aside and get professional, stress-free finance support. These are some terms to familiarize yourself with before your visit.
Principal
The principal is the amount of money you borrow from a lender, excluding interest and associated fees.
Interest
Interest is the amount charged by the lender for servicing your car loan. The interest rate is expressed as a percentage of the principal and will be factored into your monthly payments.
Title
The vehicle title is a document that confirms who owns the vehicle and includes important information such as the make, model, and VIN #. Once you pay off the car, you gain sole ownership of the title.
Annual Percentage Rate
The annual percentage rate (APR) combines the interest rate and other fees on your vehicle. For example, if you have a car loan for $10,000 at an APR of 5%, you would pay a total of $500 per year on the loan in APR costs (on top of your loan principal). This amount is further divided over 12 monthly payments, and appears as a line item on your monthly statements.
Term
The term is the length of time you have to repay the loan. This could be as short as 24 months or as long as 84 months. It’s important to note that the longer the loan term, the more interest you’ll pay on your new or pre-owned Chevrolet vehicle.
Down Payment
A down payment is the initial upfront payment you make towards the total cost of the vehicle. The larger your down payment, the lower your monthly payments will be, as you won’t need to borrow as much from a lender.
MSRP (Manufacturer’s Suggested Retail Price)
The MSRP is the suggested price of an automobile as set by the manufacturer. This price is always shown on the vehicle’s sales sticker.
Apply for Chevrolet Financing in McAllen, TX
When it comes to financing, your peace of mind is the top priority at our Chevrolet dealership in McAllen, TX. Whether you’re interested in a Certified Pre-Owned truck or a great new Chevy SUV, you can be sure of getting the right vehicle at the right price with Clark Chevrolet.