Auto Financing, Simplified at Montgomery Subaru

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Auto financing is a fairly simple process:

  • Apply for/get approved for credit from a lender
  • Specify the amount of money needed to finance your purchase
  • Your lender decides on an interest rate based on your credit score and history
  • Sign the final paperwork and start making payments

But, when you're in the thick of it--especially if you're a first-time buyer--it can seem anything but simple.

We're here to shed some light for you.


Terms You Need to Know

Here are some of the most important terms you'll need to know when you head to your local Subaru finance office:

Lease: a lease is an alternative to buying a car, where you only pay for a portion of the car's total cost/MSRP based on estimates of wear and tear and depreciation--you pay for what you use, but you don't gain any amount of ownership with lease payments.

Loan: a loan is a sum of money that is borrowed from a lender, that is paid back in full, with interest.

APR: this stands for Annual Percentage Rate, and is more than just the standard interest rate--APR includes any associated fees.

Good/Bad/No Credit: credit is your ability to borrow or history of borrowing money from a lender--the numbers for "good" and "bad" vary based on credit bureaus. No credit doesn't necessarily mean you cannot get a lease or loan, but with no history of credit it can be more difficult.


Worried about brushing up more on your financing lingo?

Let the team at Montgomery Subaru help you out--our easy, stress-free process makes it easy to understand your options and get the right lease or loan for your budget.


 

Categories: Finance
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