Common Finance Terms

Do you ever feel intimidated by the language used by sales representatives and banks when discussing auto financing? Here's a quick guide.

 

Cosigner

A third party who splits responsibility of a loan with the buyer of a vehicle, often due to poor credit or being a first-time buyer.

 

Credit

Often refers to one's credit score or credit history, a way for banks and other financial institutions to measure creditworthiness before loaning money.

 

Depreciation

The gradual loss of value a vehicle undergoes over time. New vehicles begin losing value the moment they're driven off the dealer lot and will typically lose most of their value in the first three years of ownership.

 

Interest

The cost of taking out a loan, often measured as a percentage added onto the principal of the loan.

 

Lease

An alternative to buying a car that involves temporary ownership of a new vehicle via contract with the dealership.

 

MSRP

Stands for "manufacturer's suggested retail price," and refers to the base price of the vehicle, though the dealership's price may be higher or lower than this value.

 

Title

A legal document that contains information about a vehicle and acts as proof of ownership.

 

The car-buying process is complicated, and the finance experts at Jimmy Michel Motors are available to answer all of your questions.

Contact

Jimmy Michel Motors Inc.

555 South Elliott Avenue
Directions Aurora, MO 65605

  • Sales: (417) 815-3268
  • Service: (417) 815-0609
  • Parts: (417) 815-3235

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