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Common Finance Terms - Wilmington, DE

Common Finance Terms - Union Park Honda - Wilmington, DE
When you finance a new vehicle, you’ll probably hear a lot of phrases and lingo that aren’t familiar to you. Here are some terms to know so you can get the best deal possible.

Add-on interest: Add-on interest means that the overall amount of interest you’ll pay on the car is calculated at the beginning and factored into your monthly payment. This means the bank gets the full interest amount even if you pay the car off early.

MSRP: Manufacturer suggested retail price. Depending on the dealership and what extras you add, you may pay more or less than the MSRP.

Destination charge: The cost of transporting the vehicle from the manufacturer to the dealership. Buyers pay this along with other charges like titling fees and appraisal fees.

Base price: The price of the car with only the basic equipment and no extras. This will be printed on the Monroney sticker along with the MSRP and the destination charge.

Incentives and rebates: Programs that may reduce the cost of the vehicle if the buyer meets certain criteria, like being a first-time buyer, a student, a veteran, etc. Ask if you qualify for any!

Loan term: The length of your loan, usually between three and six years. The shorter the loan, the less interest you pay but the higher the monthly payment, and vice versa.

For more information on financing, give us a call at Union Park Honda today.

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