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Common Finance Terms | High Point, NC

For many drivers, hesitation about the financing process can spoil the entire experience of buying a new vehicle. In reality, a little bit of homework reveals that the process of financing a car isn’t as daunting as you may think. We’ve done some of this homework for you, defining many common financing terms. Check out this list to learn more about affording your next car.


Pre-Qualify


When you pre-qualify for a loan, it means a lender has looked at your financial information and decided that you will likely be approved for a loan. It’s important to remember that being pre-qualified and taking out a loan are two different things. To become pre-qualified, you typically just need to share your level of income and your current debts.


Principal


This is the amount you borrow, before interest, to cover the entire cost of the vehicle you wish to purchase. It’s important to remember that you’ll have to pay back more than just the principle when you take out a loan. You’ll also have to pay for interest and any fees associated with the loan.


Interest


In addition to paying back the principal amount when you take out a loan, you’ll also pay back interest, which is the amount you pay to a lender to borrow money. Usually, this is explained in terms of an Annual Percentage Rate. APR is a percentage of the principle you pay, in addition to the principle, each year.


Balance


The balance is the remaining amount of the loan that you’re repaying. If you have a $10,000 loan and pay off $1,000, you’ll have a balance of $9,000.


Outside Lender


An outside lender is typically a bank or credit union. Customers can secure financing from a bank for a set amount to spend specifically on a car.


Onsite Financing


Onsite financing refers to financing a car purchase directly through the dealership where the car is being bought.


Co-Buyer


A co-buyer, or co-signer, is an individual who agrees to assume the responsibility of repayment if the primary buyer defaults on a loan. Having a co-buyer or co-signer will often increase your chances of getting a loan, especially if you have low or poor credit.

Want to learn more about financing a car? Contact our finance department at High Point Mitsubishi.

Contact Us

2411 N Main St.
High Point
NC
27262

Hours

  • Monday
    9:00am - 7:00pm
  • Tuesday
    9:00am - 7:00pm
  • Wednesday
    9:00am - 7:00pm
  • Thursday
    9:00am - 7:00pm
  • Friday
    9:00am - 7:00pm
  • Saturday
    9:00am - 6:00pm
  • Sunday
    Closed

Contact Information

2411 N Main St.
High Point, NC 27262
Phone: (866) 202-0488
Fax: (336) 307-4689
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