Here at Hometown Motors, we like to help our customers through the entire car-buying process. That includes the financial work at the end. One of the most difficult parts of purchasing a car is understanding all of the different financial terms. While other dealerships set out to confuse its customers with jargon, we are here to help! That is why our financial team assembled a list of common financial terms and their definitions.
At the most basic level, a base price is the cost of a vehicle without any additional features or equipment added to it.
A cosigner is a second person who assists someone in purchasing a vehicle. That cosigner assumes equal responsibility for the vehicle and ensures that payments for said vehicle are made.
Depreciation is an important concept to keep in mind if you plan on selling your car down the line, as it is the loss of a vehicle’s value due to use.
When it comes to making payments, a grace period is the amount of time that a customer has to make a late payment before they are penalized for it.
The title is the official proof of ownership for a vehicle. Once you purchase a vehicle, you will carry ownership of the title for your new vehicle.
If you have questions about financing in general, make sure you check out Finance FAQ page on our website!