Chevy Financing for Beginners
Financing a new or used vehicle is no one’s idea of a fun time. However, it doesn’t have to be so bad. If you know some terms and what to expect, the process can be relatively easy. Our Chevy financing department can help you with all the details.
To make things go even smoother, here’s a quick guide on what to expect at Kearny Mesa Chevrolet.
Three Steps to Start Financing a Vehicle
There are three quick steps you can take before any negotiating or complicated loan terms come up.
- Determine how much you can afford on a monthly basis (our handy online auto payment calculator can help).
- Get Chevy preapproval for a loan.
- Find the car you want to buy.
From there, our financial department can help with the rest.
Financing Terms
Here’s a quick list of some terms you’ll hear in the process of financing a new or used vehicle:
Manufacturer’s Suggested Retail Price (MSRP)
This is the price Chevrolet recommends car dealers should charge for a certain new vehicle. It differs with different options and packages. It is also not always the final total cost of that car or truck.
Down Payment
The amount of money you pay upfront to the dealer towards the total price of the vehicle. This helps reduce the future monthly payments and can lower the interest rate of the loan.
Trade-In Value
The total value of the vehicle you are trading in for the new one. This amount acts the same as the down payment and can reduce your state sales taxes.
Interest Rate
The amount you pay in interest for borrowing the money for the new vehicle. This is paid alongside the monthly payments on the principal.
Principal
The amount of the loan that you are borrowing. It covers fees and taxes as well but does not include the interest on the loan.
Annual Percentage Rate (APR)
The total cost you pay to borrow the money for the car. This includes the interest and fees. It is expressed as a percentage of the total loan.
Loan Terms
The amount of time you are borrowing the money for.
Get Started with Chevy Financing Today
The best way to get started on financing your next car is to come down to our San Diego Chevrolet dealership and discuss it with our excellent financial team. We can help with all of these terms and options, as well as others like leases and current incentives. We look forward to helping you secure the perfect ride!