Here at Bill Walsh Streator, we understand that not all buyers are as savvy as our finance department when it comes to the terminology involved in financing a vehicle. We also believe it's important for you to fully understand your options. To help you out, we've put together this short list of common finance terms.

 
Amount financed: This refers to the amount of credit that has been provided to you
APR: This stands for "annual percentage rate", which refers to the cost of credit when written as a percentage
Equity: This can be a positive or a negative amount, and it refers to the difference between your trade payoff balance and its value
Finance charge: This refers to the specific dollar amount that you pay to use credit
Front-loaded loans: This refers to loans that are designed so that more of the interest is paid in the beginning, so that the lender gets paid first
MSRP: This stands for "manufacturer's suggested retail price", referring to the cost of the vehicle before a dealership adds options
Retail Installment Contract: This refers to a finance agreement made that allows you to pay over time, usually at a fixed monthly rate
Stipulation: This refers to any addition documents that may be required to complete a transaction, such as proof of income
Trade-in allowance: This refers to an amount of money that is taken off the purchase of a new car, if you trade in your old car
Have any other finance questions? Feel free to contact us or visit us anytime at Bill Walsh Streator.