Chevrolet Financing Terms to Familiarize Yourself With

We know that buying or leasing a vehicle is an important decision. Our Chevrolet financing team strives to make the process as easy and worry-free as possible. Here, Mauer Main Chevrolet explores some terms you should know when purchasing or leasing a new Chevrolet. 

Interest Rate and Annual Percentage Rate

While an interest rate is what you will pay the financial institution to lend you money, the annual percentage rate is slightly different. The higher the interest rate, the more you will pay in finance charges over the life of your loan. The annual percentage rate (APR) combines the interest rate plus any additional fees incurred when financing your vehicle such as origination and destination fees.

Down Payment and Monthly Payments

A down payment is the initial amount you place towards the vehicle, which helps to reduce the size of the loan you take out. Every $1,000 you put down towards the final loan amount will decrease your monthly payment by an average of $15. You can see exactly how your down payment affects your loan terms with our Chevy payment calculator.

Loan Terms and Total Payments

The terms of your Chevy loan include many variables. Terms are comprised of the length of your loan, monthly payments, interest rates, and total interest you will pay over time. If you choose a shorter payment schedule you will have a higher monthly payment. If you choose the longer term of repayment, your payments will be smaller per month, but you may end up paying more. 

Every financial situation is unique, so if your budget does not allow for a larger monthly payment, don’t stress. Choose the longer term of repayment so you can feel confident in making monthly payments on time. 

Credit Report

Your credit report has an impact on every purchase you make, and car buying, whether new or pre-owned, is no exception. Those with higher credit ratings will have a wider choice of loan options. The better your credit score, the more money you can save.

Learn More About Chevrolet Financing in Anoka, MN

To learn more or apply for Chevrolet financing, go online or visit our Anoka, MN, Chevrolet dealership. Our experienced financial consultants can answer your questions and help you get the financing you deserve for your new Chevy vehicle today!