Everything Auburn Drivers Need To Know About Auto Financing

Here at Montgomery Subaru we know that many of our customers from the Tuskegee area are not financing experts and we want to help our customers easily navigate the auto financing process. Which is why we have created a guide to auto financing terms.

One way that Montgomery Subaru aims to help our customers feel more comfortable with auto financing is by defining the langue that is most commonly used.

  • APR: APR or Annual Percentage Rate is the actual cost of credit (interest) that you will pay on an annualized basis.
  • Credit History: Your financial record that allows lenders to determine your ability to repay loans.
  • Down Payment: A portion of the total cost of the vehicle that you pay at signing to secure the car loan. The size of the down payment will affect your monthly payments.
  • Incentive Rate: A special interest rate that is offered by Subaru to customers with excellent credit history.
  • Lease: A fixed, long-term contract were you rent your Subaru from us, the dealership, and make monthly payments. At the end of the contract the vehicle is returned to the dealership.
  • Financing: Financing is when you purchase the vehicle outright and one you are done paying it off you will no longer have monthly payments.
  • Market Value: The value of the vehicle based on the competitive market for similar vehicles.
  • MSRP: Manufacturer’s Suggested Retail Price is the sticker price of all new Subaru models as determined by Subaru.
  • Title: The legal document that shows the ownership history of a vehicle.
  • Upside Down Loan: This is when the owner of the vehicle owes more money on their trade-in than the vehicle can be sold for.

In addition to defining what many different auto financing terms mean, we also have a skilled team of professionals that are standing by to answer any questions you may have. They also work our customers to remove the stress and worry of getting approved for credit. Also, be sure to visit our online financing center to get a head start on the paperwork from home and find more information about auto financing.

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