Skaha Ford's Exclusive Easy Deal
Auto Financing Terms in Vernon: What is a Finance Agreement?
Tags:
(Posted on Jun 6, 2022 at 02:11PM )
The terms and phrases associated with the purchase or finance of a vehicle can be confusing for BC shoppers. However, if you want to apply for an auto loan, it’s essential to familiarize yourself with key terminology. At Skaha Ford, we help simplify the process for Vernon vehicle buyers by breaking down the basics with our exclusive Easy Deal program.What is a Finance Agreement?
A finance agreement is what you sign when you borrow money to purchase a vehicle. It outlines where you are buying the car from and the agreed-upon price, the amount financed, interest, any financing charges, and the terms of the loan.
Suppose you are paying for a new truck through in-house financing. In that case, the dealer will retain the agreement. If you use a traditional lender (such as a bank, finance company, or credit union), that institution will collect payment. When you finance a car, you own it, but the loan provider will record a lien against it until the finance agreement is paid in full and all contract terms are met.
Want to learn more? Contact Skaha Ford in BC for answers to your automotive financing questions, or click here for details about Easy Deal.
Are you looking to finance a vehicle but are perplexed by the terminology? With so many words and phrases used, it can be challenging to know what everything means and what you are paying for. At Skaha Ford in BC, we understand. Our team strives to explain common car loan terms to eliminate any auto financing confusion with our Easy Deal program.For example, the expression amount financed can mean different things to shoppers. This figure is the actual amount of approved credit that customers can borrow. If you’re buying from a dealership, the amount financed may include all taxes, fees and additional extras, such as an extended warranty or add-ons. However, it does not factor in any down payments, trade-in allowances or cash rebates. Those are deducted from the total.
If you’re saving to buy a Ford or trading in an older model, a down payment or trade-in allowance reduces the amount of money you need to borrow, which improves your chances of an approval. The less you need to finance, also lowers your borrowing costs, including interest charges.
Do you want to know how much you can finance? Our Easy Deal program offers free online credit approvals. To learn more, contact Skaha Ford in BC.
