The Finance Terms You Need to Know Before You Get a Loan or Lease

The best part about shopping for a new or used car near Dayton or Austin Landing, OH is envisioning how your life will go next level with your new ride. However, all that can quickly come crashing down when figuring out how to pay for it all. While our world-class finance team will work with you to find the perfect loan or lease rate that fits into your budget, there's no denying the complexity of the process.

Hence, it's our duty to ensure that our Oakwood, OH customers are as informed as possible when they come into our dealership. That said, here are the most important terms you need to know.

Loan Terms

Lender: This is an easy one. This is merely the bank or institution from which you borrow money to pay for your vehicle.

Principal: The amount of money the lender loans you.

Maturity Date/Term: The point in time which the loan should be paid back in full.

Interest Rate: A percentage charged on the principal to you for borrowing money.

APR: The annual percentage rate, represents the actual cost to you on a yearly basis to take out the loan.

Leasing Terms

Capitalized Cost: The negotiated selling price of the car plus any additional fees.

Acquisition Fee: A fee that leasing companies charge to arrange the lease.

Depreciation: The percentage in value that a car lowers by after it is driven off the lot.

Residual: The amount that your vehicle is worth at the conclusion of your lease.

Questions? We're Here for You

Ready to finance or lease an Acura vehicle today? We can help. Our finance team has helped thousands of drivers around West Chester, OH and Kettering fit a new or pre-owned vehicle into their budgets and we're confident we can do the same for you. Our dealership is conveniently located in Centerville, OH and we look forward to seeing you.