If you’re buying a new car, you’re probably going to need financing. If you’ve never applied for an auto loan before, the process could seem intimidating. That’s why the Buick finance experts here at Starling Buick GMC do their best to make the process simple and stress-free. First, let’s take a closer look at some common finance terms and what they mean for you and your car loan.
Common Finance Terms
Down payment: This is the first payment that you make for your vehicle. It often accounts for around 20% of your car’s total value.
APR: Your APR is essentially the interest rate on your loan. The lower your APR, the better. A high credit score and solid credit history can often help you secure the best possible rate.
Loan Term: This is how long you have to pay back the loan on that new 2020 Buick Encore. Many drivers opt for a five year loan term these days. A longer term means lower monthly payments, but more interest paid, while a shorter loan term obviously means the opposite.
Lease: This is an option if you don’t want to apply for an auto loan. You place a down payment and make monthly payments just as you would if you purchased a car. Generally, the monthly payments are lower than loan payments would be, but you don’t actually own the car and can trade it in for something else at the end of your lease term.
Our Buick Financing Department
Our Buick financing experts make it easy to apply for a loan online, and we also offer online tools that can help you see how a new car fits into your budget. We work with our wide network of lenders to help you find a financing option that works for you. So if you’re in the market for a new crossover or a capable truck like the 2020 GMC Canyon, we’re ready to assist you!