A Fast Guide to Important Auto Finance Terms

If you need a car but aren't quite sure about the loan terms, Cassill Motors in Cedar Rapids, IA is happy to cover the basics. Auto loans are based on creditworthiness, and the best rates go to the customers that pose the least risk for the lender.

A common term is the APR. It stands for annual percentage rate and expresses the amount of interest charged as a percentage per year. It's helpful to compare rates by this number rather than the overall interest rate.

A fixed-rate auto loan provides buyers with a stable payment; whereas, a variable interest rate fluctuates, and the payment can go up or down. Most borrowers opt for a fixed-rate loan to avoid increases in their monthly payment. The principal loan amount reflects the amount borrowed or the balance that's strictly left for the vehicle, without any interest. Our Cedar Rapids customers are welcome to stop by our dealership in Cedar Rapids, IA, or give us a call for a pre-approval, today.