An Explanation of Some Frequently Used Finance Terms
Do you want to get a certified pre-owned Mercedes-Benz car? Are you having trouble not thinking about having a new Mercedes-Benz vehicle in your driveway? Whether you want a previously owned, CPO, or new Mercedes-Benz automobile, we applaud your superior taste in vehicles.
A lot of people who buy a car from our Burlington, MA Mercedes-Benz dealership decide to finance their purchase. While we finance premium vehicles every day, it’s unlikely that you buy or lease an automobile daily. For this reason, we thought it might help if we provided some definitions for some frequently used finance terms that you may not be familiar with.
APR and interest rate are two terms that many motorists use interchangeably. While a loan’s annual percentage rate may be the same as its interest rate, that’s not always the case. An APR is exactly what its name implies – it’s the rate of interest you’ll pay on a yearly basis. An interest rate may or may not refer to a 12-month period of time. When you’re comparing loan offers, be sure you focus on their APRs to identify the best deal.
A car loan’s maturity date is the last day you’ll have to pay off your auto loan. If you don’t settle your loan by its maturity date, you’ll go into default. Drivers who find themselves in default run the risk of having their cars repossessed by their lender. If you can’t pay off your loan on time, it’s best to contact your lender to make alternate arrangements.
We know there are many more finance terms you may want to learn about. If you want to know what a given finance term means, do not hesitate to contact Mercedes-Benz of Burlington because we’re always happy to answer any questions you may have.