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Auto Financing Terms in Vernon: What is a Finance Agreement?
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(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.
The world of auto financing comes with a wide range of terms – and if you’re new to car buying or applying for a loan, it can feel overwhelming. If you can relate, you’ve come to the right place. At Skaha Ford in BC, we take the mystery out of auto loans with Easy Deal.What is a Lien?
A lien is a lender’s claim for repayment registered against the vehicle. It remains on a car until the debt has been paid in full and no balance is owed. According to the Financial Consumer Agency of Canada, only lenders and garages have the right to place a lien, and vehicles can have more than one lien on it.
Before trading in your vehicle, it’s essential to check if it has a lien. If one or more are registered, you must remove the liens before the car can be sold to a dealership.
Need help selling your car, truck or SUV? Now is a great time to trade it in at Skaha Ford in BC. To get started, send us your information by completing this quick online form, then select your next vehicle from our inventory of new and used models. With Easy Deal, you can apply online for financing and select a pick-up time that works for you.
To learn more, contact our team today!
