Automotive Finance Terms in Kennesaw, GA
Automotive Finance Terms in Kennesaw, GA
If this is your first time purchasing or leasing a new Hyundai, or if you haven't upgraded your vehicle in a while, you may feel intimidated by the finance process. But when you finance with Hyundai of Kennesaw, you'll find that we make it easy. We want you to feel prepared before you sit down with one of our finance experts, so we've provided a list of common words used when financing your vehicle. If you'd like to familiarize yourself with these terms, or just need a refresher, read through the definitions below.
Financing
Financing a vehicle means that you will borrow money from a lender in order to purchase the vehicle. You will repay the loan with interest by making monthly car payments over a set amount of time.
Leasing
Leasing your vehicle means that you'll pay to drive a new vehicle without actually owning it. You will make monthly payments until the lease term ends, which is typically 24-36 months. At the end of the lease, you can either return the vehicle or purchase it.
Term
Term means the length of time for a loan or lease.
Principal
Principal is the amount of the loan that you are paying off. This does not include interest.
Down Payment
You will likely be required to make a down payment whether you are leasing or financing your vehicle. A down payment is the amount of money you pay upfront on your purchase or lease.
Interest
Interest is the amount of money that the lender charges you for borrowing money.
Cash Back
Manufacturers sometimes offer cash back or rebates on new cars. Cash back is an incentive offered to encourage the purchase of a vehicle. Cash back is a rebate you can either place towards the down payment of the vehicle or receive as a check.
Trade-In
When you're ready to upgrade to a new or used vehicle, you'll have the option to trade in your old vehicle at the time of purchase. The value of your trade-in can be applied to your purchase or lease, lowering the cost of your new vehicle.
Depreciation
Depreciation is the gradual loss of a vehicle's original value. The process of depreciation begins when the vehicle is purchased.
Equity
Equity is the difference between your vehicle's value and how much you still owe on it. For example, if your vehicle is worth $20,000 and you still owe $5,000 on it, you have $15,000 in equity.
Upside Down
Negative equity is also known as being upside down, a situation you want to avoid. This happens when you owe more on your vehicle than what it is worth. You can rely on us to help keep you from making this mistake!
If you have questions about our finance process, or if we can help clear up any of these or other finance terms that you don't understand, please let us know. Give us a call, contact us online or stop by Hyundai of Kennesaw at 2878 Barrett Lakes Blvd, Kennesaw, GA 30144 , near Marietta, Acworth and the greater Atlanta area. We look forward to chatting with you!