Covering all of your bases is a sure fire way to get a great deal on a new car. While you likely already know to inspect the car and take it for a test drive, there’s still the matter of finance knowledge. Having a general idea of several finance terms could put you on the right side of the contract. Here are a few must-know automotive finance terms that could help you recognize the better deal!
To keep it simple, add-on interest is the interest that is calculated at the beginning of the loan and is added to loan to get the final amount. The buyer must pay the add-on interest even if the loan is paid in full before the contract’s end date.
The invoice price is how much the dealership pays the manufacturer for the vehicle. The manufacturer could offer incentives and rebates as well so the invoice price may not be the dealership’s final price. As a general note, the destination charge is always included in the invoice price.
Put simply, the trade-in value is the amount a dealership will buy or credit you for your used vehicle. The credit may be applied to the purchase of a new vehicle or be negotiated outright.
When you go to buy your next new or used car, be sure to contact Bates Nissan in Killeen, TX. We proudly serve all areas around Killeen, including, Temple, Bryan, Waco, and Austin, TX. Bates Nissan offers the most competitive prices on all new Nissans in stock. Stop by today to browse our lot and have all of your financing questions answered.