Glossary of MAZDA Finance Terms
We know that it can feel overwhelming when it comes to your Mazda finance options. We want to do everything we can to help you make an informed decision when you shop with us. Our experts at Route 9 Mazda have put together a glossary of finance terms to help.
Auto Financing
Financing refers to securing a loan from a lending institution to pay for a Mazda vehicle. You have a predetermined length of time to pay back the loan in monthly payments.
Co-Signer
A co-signer is an option if your buying criteria is less than ideal. Your co-signer agrees to take over your loan payments if you can no longer do so. That person’s credit and income will also be used in determining your approval and rates.
Down Payment
The down payment is any amount you pay upfront towards the purchase of your vehicle.
Equity
Equity is the difference between what you owe on your vehicle and what it’s worth. If you owe more than it’s worth, that is known as negative equity, or being upside down in your loan.
GAP (Guaranteed Asset Protection) Insurance
If you are involved in an accident that totals your vehicle or if your vehicle is lost or stolen, insurance will only cover the current market value of your vehicle. If you still owe more on your loan than your vehicle is worth, GAP insurance will cover the difference.
Interest Rate
Your interest rate is a fee owed to your lender in exchange for borrowing money. It is typically displayed as a percentage.
Leasing
With a lease, you are paying to borrow a vehicle from our dealership, with a predetermined length, rates, and restrictions. Then, you’ll need to return the vehicle at the end of your lease.
Principal
This is the total amount you borrowed. The principal amount does not include interest.
Term
Your term is the total length of your loan, which is typically measured in months.
Trade-in Value
Your Mazda trade-in value is the estimated value of your existing vehicle, which can be applied towards your new purchase if you decide to sell your vehicle to our dealership.
Apply for MAZDA Financing at Route 9 MAZDA
Our team is happy to walk through the financing process with you at any time. Or, if you’re ready to get started, we’re ready to help. Stop by our Mazda dealership in Poughkeepsie, NY to chat with our team today!
