Automotive Finance Terms in Cumming, GA
Automotive Finance Terms in Cumming, GA
If you're new to the process of financing or leasing your vehicle (or if it's been a while), Hyundai of Cumming is here to assist you through every step, from helping you decide on the perfect new Hyundai or used vehicle to finding the most affordable options for your financial situation. We even offer monthly specials on select new and used vehicles, helping our customers save even more. But before you meet with one of finance experts to finalize your purchase or lease, we want to help you prepare. Below, you'll find several common finance terms that you'll probably hear as we discuss your finance options. Take a look to familiarize yourself with these terms or give yourself a refresher, and don't hesitate to reach out if you have any questions.
Financing
If you choose to finance your vehicle, you will borrow money from a lender to purchase the vehicle and then will repay the loan over a period of time with monthly payments that include interest.
Leasing
If you choose to lease, this means you will be paying to drive a new vehicle but won't have ownership of it. Until the lease term is up (which is typically in 2-3 years), you will make monthly payments. You'll have the option of either returning the vehicle or purchasing it when the lease ends.
Term
Term is the length of time agreed upon for a loan or lease.
Principal
The principal is the initial amount of the loan, not including interest.
Down Payment
When financing your vehicle, a down payment is the amount of money you pay upfront on your vehicle before you start making monthly payments. The more money you put down, the less you will have to pay off.
Interest
When you borrow money from a lender, interest is the fee you are charged for borrowing and will be included in your monthly car payment.
Cash Back
You may sometimes see offers for cash back on select vehicle purchases. These are incentives offered by the manufacturer to make buying the vehicle even more appealing. Cash back is a rebate that you can put towards the amount of the down payment, or you may choose to be issued a check instead.
Trade-In
Trading in your vehicle is a great (and convenient) way to save on your next new or used vehicle. The value of your old vehicle, the trade-in, can be applied to your next vehicle purchase, resulting in a lower cost on the new vehicle.
Depreciation
Depreciation is the process of a vehicle losing its original value. It begins when the vehicle is purchased from the dealership.
Equity
Equity is the difference between how much a vehicle is worth and how much money remains to be paid off. For example, if your vehicle is worth $20,000 and you have $5,000 left to pay off, $15,000 is what you have in equity.
Upside Down
Being upside down means that you have negative equity, which you want to avoid if possible. Negative equity means that you owe more on the vehicle than what it is worth. We'll do our best to help you avoid this situation.
If you have questions about our finance process or have questions about these finance terms or others that you don't understand, please let us know. We're here to help, so give us a call, contact us online or stop by Hyundai of Cumming at 750 Peachtree Pkwy, Cumming, GA 30041 , near Alpharetta, Johns Creek and Lake Lanier.