We're looking for experienced service technicians, porters, attendants, detailers, and salespeople. Click here to learn more about joining our team!
Welcome to the automotive finance glossary, your comprehensive guide to understanding the complex and ever-evolving world of automotive finance. Whether you’re a seasoned industry professional, a prospective car buyer, or simply curious about the financial intricacies of the automotive sector, this glossary will serve as your go-to resource for all things finance.
The minimum credit score required for automotive financing can vary depending on the lender and your specific situation. Generally, a good credit score is considered to be 700 or above, but some lenders may work with borrowers with lower scores, but with higher interest rates.
Financing a vehicle means taking out a loan to purchase it and paying it off over time. Leasing, on the other hand, involves renting a vehicle for a set period with the option to buy it at the end of the lease term. Monthly payments are typically lower when leasing but don’t build equity as they do with financing.
A down payment is an initial payment made when purchasing a vehicle to reduce the loan amount. The amount you should put down depends on your budget and the lender’s requirements. Typically, a down payment of 20% is recommended, but some lenders accept less.
Yes, you can refinance your auto loan to get a better interest rate if your credit score has improved or if interest rates have dropped since you initially took out the loan. Refinancing can help you save money over the life of the loan.
A balloon payment is a large, lump-sum payment due at the end of a loan term. It is often associated with certain financing agreements, and it can be a way to lower monthly payments during the loan term. However, it’s important to be prepared for this large payment when it comes due.