Understanding Car Loan Terms in Vernon

May 25,2022

Are you looking to finance a vehicle but are perplexed by the terminology? With so many words and phrases used, it can be challenging to know what everything means and what you are paying for. At Skaha Ford in BC, we understand. Our team strives to explain common car loan terms to eliminate any auto financing confusion with our Easy Deal program. For example, the expression amount financed can mean different things to shoppers. This figure is the actual amount of approved credit that customers can borrow. If you're buying from a dealership, the amount financed may include all taxes, fees and additional extras, such as an extended warranty or add-ons. However, it does not factor in any down payments, trade-in allowances or cash rebates. Those are deducted from the total. If you're saving to buy a Ford or trading in an older model, a down payment or trade-in allowance reduces the amount of money you need to borrow, which improves your chances of an approval. The less you need to finance, also lowers your borrowing costs, including interest charges. Do you want to know how much you can finance? Our Easy Deal program offers free online credit approvals. To learn more, contact Skaha Ford in BC.