Glossary of Chevrolet Financing Terms

When it comes to Chevy financing, the more you know, the more confident you’ll be at every step of the process. Wilkinson Chevrolet GMC is sharing a closer look at the top financing terms that you’ll want to familiarize yourself with.

Down Payment

The down payment is the amount that you put down the day you take home your vehicle. The more you put down, the more quickly you’ll be able to pay off your loan, and the less you’ll pay in interest over time. Consider a 20% down payment as recommended by the 20/4/10 guideline.

Interest

Interest is the cost of borrowing a loan. You want to pay your vehicle off quickly so that your accrued interest costs will be lower. Vehicles with longer term lengths tend to have a higher interest rate than vehicles with shorter term lengths.

Credit Score

Your credit score plays an important role in the vehicle financing process. It tells lenders how reliable you are to lend money to, which is why drivers with higher credit scores have more favorable terms. It can be worth it to raise your credit score before you finance.

MSRP

MSRP stands for the manufacturer-suggested retail price, which is the amount of money that the manufacturer believes the dealership should sell the car for. While MSRP can be important, remember that there are always other costs to consider.

Co-Signer

If you don’t have perfect credit or you have a low down payment, you may need the help of a co-signer. A co-signer is a person who agrees to pick up the car payments if the owner fails to do so. You only want to partner with a co-signer who you really trust.

Learn About Chevy Financing in Sanford, NC

It’s easy to begin the Chevy financing process when you visit Wilkinson Chevrolet GMC. Explore our tools and resources and check out our glossary of terms today. Visit our dealership for the financing support you deserve.

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