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


APR -
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

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