Know the Auto Finance Terms Before You Buy

Here at Cassill Motors, we strive to be very transparent with our buyers in Cedar Rapids, IA when it comes to auto finance terms. You should always know the specifics of your terms before you buy. These are a few things you should pay attention to.

Your APR, or Annual Percentage Rate, is more commonly referred to as the interest rate on your auto loan. This is the amount of money that you will pay the lender for the sum you borrow. The APR that you are offered will usually be lowered if your credit rating is high. You should always try to negotiate the best rate.

Your monthly payment amount is the total you must pay the lender each month. This total is a combination of principal and interest. Principal is the amount applied to paying off your loan. Interest is the amount that is applied to paying off the amount charged by the lender to finance your vehicle.