Nissan Finance Terms and Glossary- Boone, NC

As you look for your next vehicle, you may also be wondering about how to obtain financing. Here is a short glossary of common automotive finance terms to help you begin the process!

Finance Application     Finance department

The annual amount of interest that you pay on the full amount of your loan

Blue book value - Refers the averaged price of a used vehicle in a particular area; this term was coined by Kelley Blue Book

Destination fee - A fee that the manufacturer charges to deliver a vehicle from the manufacturing plant to the dealership

Down payment - The initial payment you make on a loan, designed to prevent being upside-down

Nissan Car Financing Terms

Gap insurance - Insurance that covers the difference when you owe more than your vehicle is worth in case your vehicle is stolen or totaled

MSRP - Stands for Manufacturer Suggested Retail Price

Principal - The amount of your loan minus the interest

Refinancing - The process whereby one creditor pays off your loan and offers you a new loan at a lower interest rate

Trade-in value - The amount that a dealership subtracts for a new purchase when you trade in your current vehicle

Upside-down - Owing more on your vehicle than it is worth; typically occurs during the first couple years of ownership of a brand new vehicle

Wear-and-Tear restriction - Leases come with a restriction for the amount of wear and tear a vehicle can sustain without exacting a penalty