Used Car Financing 101: Common car loan Terms

Common Car Loan Terms
If you are thinking about purchasing a used car at Chip Wynn Motors, brush up on your vocabulary with these common car loan terms beforehand.

Are you thinking about purchasing a used car at Chip Wynn Motors? Brush up on your vocabulary with these common car loan terms before heading into our dealership for a test drive.

  • Bill of sale: This is a document that Chip Wynn will put together for you upon purchase; it will cover various details of the transaction.
  • Credit score: This score gives our finance department and other lending institutions a snapshot view of your credit history to help determine what kind of loan to offer you.
  • Disclosures: When you purchase a used car, it is important that you learn all of its history, including repairs or title issues. We will be sure to get these disclosures to you before you make a final decision on any car.
  • Down payment: This is the amount of money that you are paying at signing for the car. Whatever is left of the car price will be financed.
  • Principal: The principal is what you owe on your loan, not including the interest.
  • Term: This reflects the duration of your loan, in months. Typical car loans range from 3 to 5 years.

Have more questions about purchasing a used car at Chip Wynn Motors? Contact our sales staff or our finance department for more information.

Benefits of a Good Credit Score

They say that age ain’t nothing but a number. Credit scores, on the other hand, are extremely important numbers that affect many potential endeavors in the adult world. There are lots of reasons to work towards a good credit score. May this list be the inspiration you need to improve yours.

 

Better Loan Approvals

Lenders like banks, credit unions, and even dealerships like Chip Wynn Motors use your credit score to determine how likely you are to pay back debt. Thus, the better credit score you have the better loan options you’ll get.

 

Better Chance of Getting an Apartment

Lenders aren’t the only ones interested in your history with debt. Landlords will also want to know your score. A good credit score means there’s a good chance you’ll pay rent on time.

 

Less Expensive Car Insurance

Car insurance companies see a bad credit score and make the assumption that a person will file lots of claims. Having a low score doesn’t mean you won’t be able to get insurance, but it might mean you’ll be paying a much higher premium.

Good Credit Score

Avoid Paying Deposit on Utilities

If a utility company sees that you have bad credit or no credit, they may ask for a deposit before turning on the utilities in your name. A good credit score will show them that you can pay your bills each month. Often times this is enough assurance for them to waive the deposit fee.