When financing vehicles, drivers in Twin Falls often come across many terminologies. While some have simple meanings, others are usually complex, making them difficult to understand. The following are the common finance terminologies you will hear when you visit us at The Car Store.

Auto Loan: A contract between you and a lender in which they give you a specified amount of money to finance your purchase. You will agree to pay the money back with an interest on top. The vehicle is used as collateral, and the lender owns the vehicle's title until the loan is paid.

Interest: This is also called a finance charge. It is the sum of money added during the loan term. It covers the lenders cost and profit.

Interest Rate: This is also known as the annual percentage rate (APR). It is the amount of interest due after a specified period as a proportion of the lent amount.

Categories: Finance