Common Terms You'll Hear When You Finance Your Vehicle

Purchasing a new car, truck, or SUV is a big step. Lenders don't just hand out automotive loans to anyone. They require a wealth of information to ensure that borrowers are prepared to make payments. During the financing process, you may hear a number of confusing terms. We want you to make an informed buying decision, so here are some common financing terms and their meanings.

One common point of confusion for buyers is the debt-to-income ratio. Also referred to as the DTI, this percentage value is used to determine how your monthly income is dolled out. It represents the ratio of your monthly debt payments to your pre-tax income. Another important term is APR. Creditors will offer varying APRs, or annual percentage rates, based on a number of factors. The APR is the amount of interest you'll pay on the loan each year.

For more information about the financing process, stop by Volvo Cars Plymouth. We'll be happy to walk you through our financing options and help you get the vehicle of your dreams in Plymouth.

 

 

Categories: Finance
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