Tag Archive for Auto Loan Terms

Auto Loan Terms: Words to Know Before Purchasing Your Next Vehicle

Auto Loan Terms

Financing a vehicle can be a confusing, and sometimes stressful, experience. At Sanderson Ford, we want you to feel confident every step of the way. Feel free to call us with any of your financing questions. Here are some common auto loan terms that will help familiarize you with the financing process.

 

Base Price

 

This is the cost of a vehicle at its most basic level, before you add on any extra options.

 

Dealer Incentives

 

These are programs designed by the manufacturer to encourage dealers to promote slow-selling vehicles.

 

Extended Warranty

 

Once the manufacturer’s warranty expires, an extended warranty will kick in to cover the cost of any maintenance or repairs on a vehicle. Extended warranties can be purchased throughout the first year of ownership.

 

Rebate

 

Like the dealer incentive, a rebate is put forth by the manufacturer to encourage the sales of a specific vehicle. It often involves a price reduction in the form of a money back program.

 

Trade-In Value

 

When buying a new car, you have the option to trade in your old car as part of the payment for a new one. The amount of money that the dealer will take off of the new vehicle’s price in exchange for your old car is called the trade-in value.

 

Still have questions about these terms or other financing situations? Call us here at Sanderson Ford; we’ll be glad to assist.

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