When you ask people for advice about buying a new car, they’ll be glad to tell you what the best model to pick is and where to buy it from. But few people recommend you read up on the terminology of the financing of a vehicle. Take our advice: familiarize yourself with the following common finance lingo before you negotiate anything with your salesman. You’ll save yourself from confusion and a headache.
APR: An abbreviation for the annual percentage rate, this is the interest rate you will pay on a loan over the loan’s entire term.
Buyout Price: If you choose to fully purchase a car after leasing it for a few years, you would have to pay this amount of money.
Credit: A score based on your financial history which lenders use to determine how much money to loan you.
Depreciation: The difference between the initial cost of the car and its residual value after a given period of time.
Down Payment: The minimum amount of money a customer must pay on a vehicle upfront before the rest is financed.
Equity: This is the value of your car in consideration of how much you still owe on it.
Lease: When a dealership lends a car to a person for a period of time at a certain cost.
MSRP: The price that the manufacturer suggests a dealership should sell a new car at.
Pre-Approval: Acceptance by a financial firm to loan you up to a certain amount of money, agreed upon before you make a purchase.
If you have any other questions about our financial department, please feel free to contact us at by filling out the form to the right or by calling our dealership at 417-882-3900. For all of your other car needs, stop by Don Wessel Honda located in Springfield, Missouri today!