What Finance Terms Mean at Woodhouse Place Mazda
Ready to buy a new Mazda car or SUV but not sure where to start? Often, financing can be a confusing or even overwhelming part of the car-buying process. At our Mazda dealership near Lincoln, NE, we know Mazda financing is a major decision and want to help make it as straight-forward as possible. A good start for most of our shoppers is understanding finance terms and what they mean.
Finance: When we talk about financing, we mean borrowing money from a financial institution to cover the upfront costs of your new Mazda vehicle. Once you pay back what you owe, you own the vehicle.
Lease: If you opt to borrow one of our new Mazda vehicles, rather than purchase it, you can lease it from our dealership. That means, you make monthly payments for a predetermined length of time and then trade in your vehicle for another at the end of the term.
Term: The term is how long your loan or lease is. Generally, you can decide how long you want to stretch out your payments. Longer terms mean lower monthly payments, although you pay more in total interest over the length of the loan.
Down Payment: This is the amount of money you pay at the purchase of your vehicle. It’s taken out of your total investment, so you don’t need to finance this portion. You can also opt to trade-in your existing vehicle in lieu of a cash down payment.
Interest Rate: Your interest rate is the portion of your monthly payment that goes directly towards your financial institution and not towards your loan principle. A higher credit score typically secures a lower interest rate.
Don’t get overwhelmed by the car-buying process. Our Mazda finance center is here to help. You can come in and speak with one of our experts about getting prequalified. Or, you can opt to apply for credit onlineto get prequalified. Then, we can help you find the best lender with your terms in mind. Ready to get started? Come visit our team at Woodhouse Place Mazda or give us a call with any questions. We’d love to help you get into a new Mazda vehicle today!