FINANCE TERMS
If you're considering a new Mazda near the Susquehanna Valley area, it makes sense to familiarize yourself with some of the more common finance terms you'll likely hear during the purchase process at our local Mazda dealer. Here are several to get you started:
- Annual percentage rate (APR):Â when you finance your vehicle with a financial institution, you borrow the money necessary to make the purchase. The APR is the yearly interest rate you are charged for borrowing the money.
- Credit Union:Â a credit union operates similar to a bank, except that it is owned by members who pool their deposits together for borrowing purposes at low-interest rates. Credit unions offer several financial services too.
- Lease: when you lease a vehicle from our Mazda dealership serving Northumberland, PA, you only pay a portion of the vehicle's total cost - unlike a purchase, in which you pay for the car's full value. A lease has a set beginning and end date.
- Principal:Â this represents the original amount of money you borrow from your financial institution before interest is applied. As you begin paying down this amount, it becomes known as "principal balance".
