When you're considering buying a new car, there are lots of things to think about! But it can all be pretty overwhelming. Here are some common finance terms that you should know before you go to buy or lease a new car.

APR

This term stands for Annual Percentage Rate, and refers to the amount of interest a year that you'll have to pay off on a loan. This is determined at the time you get the loan and doesn't change.

Credit Score

You should know what this means, but you should also know what yours is! A credit score tells lenders how trustworthy you are, which determines what kind of loan and what rates you can get.

Down Payment

You might need a down payment or you might not. The bigger the down payment, the lower your monthly rates will be, whether you're buying or leasing.

MSRP

This is another acronym you'll want to know. It stands for Manufacturer's Suggested Retail Price, and it refers to the price of the vehicle as suggested by the manufacturer, which can change according to the dealer. It also does not include tax, title, license, and other fees.

Principal

This refers to the total amount of money that you borrow for a loan.

Have more questions? Come ask us here at Rochester Hills Chrysler Dodge Jeep today!

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