If you’re looking for a new Lexus car for sale, we invite you to visit our Jacksonville, FL Lexus showroom. Our Lexus dealership is where you’ll find new and previously owned luxury vehicles that are great-looking and loaded with sought-after features. If you decide to buy or lease one of the cars at our location, you might hear some financing terms you’re not familiar with.
For many people, cars are the second most valuable capital asset behind a residence. Because a vehicle is such a large investment for most, it’s important to understand the lingo that’s used when you buy or lease an automobile.
Being Lexus dealers near Ponte Vedra Beach, FL, we encourage you to look over the following finance terms and their meanings:
Down payment: This term refers to the money you’ll pay out of pocket when you sign your loan or lease agreement.
APR: Shorthand for “annual percentage rate,” this is basically the fee or interest rate you’ll need to pay your lender for having borrowed money to get your car.
Principal: The principal is the amount of money you borrow to purchase your automobile before interest is considered.
Equity: Your equity is the difference between what you owe on your car and your vehicle’s value. If your automobile is worth less than your loan balance, you are what’s referred to as “upside down” on your loan.
Term: Every auto loan has a term, which is the length of time your loan will last.
Depreciation: This refers to the loss of value that a vehicle experiences over time. Cars typically depreciate faster when they’re new or newer.
If you have a question about a finance term that’s not defined above, contact the experts in our Lexus finance department serving Amelia Island, FL or visit Lexus of Jacksonville today.