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.