What Common Finance Terms Mean

 

At Moritz Chrysler Jeep® Dodge RAM, we understand financing can be a daunting subject. Though, with a few basics and a team of knowledgeable professionals ready to help guide you, financing becomes much easier to navigate. When the time comes to sit down and discuss your financing options, our team of dedicated financial experts at our Chrysler financing center will walk you through each section of the financial agreement and ensure all of your questions are answered.

  • Finance: To finance a car means that you borrow money from a bank or financial institution to buy your vehicle. Once you’ve paid off the loan you own the vehicle.
  • Lease: A lease is like a rental agreement. The dealership owns the vehicle and the lessee agrees to use the vehicle for a certain amount of time. Lease terms are usually for one to three years, during which you make monthly payments to the dealer. At the end of the lease you can sign up for the lease or you may have the option to buy the vehicle you are leasing.
  • Interest rate: There will be a fee anytime you borrow money from a bank or financial institution. The interest rate is that fee expressed as a percentage. The higher your credit score, the lower your interest rate.
  • Down payment: The amount of money you can pay upfront towards your purchase or lease agreement.
  • Equity: The difference between what you owe and what the car is worth. As you pay off your loan, you build equity.
  • Gap insurance: Insurance that covers the difference between a vehicle’s value stated in the financial agreement and the amount owed on it. If your car is stolen or totaled, your provider would pay the value difference.
  • If you still have questions, our Jeep dealership in Fort Worth, TX would be happy to help. We’ll work with you to find the financing agreement that works best for your budget. We offer many helpful tools on our website, including a tool to value your trade-in and to help you estimate your monthly payment amounts. You can even fill out a finance application via our secure portal.

    Our dealership is committed to making your financing experience stress-free and enjoyable. At our car dealership, you can expect personalized and friendly service every step of the way, from test driving a new Jeep vehicle to taking home a new Dodge SUV. Call us today at 888-570-1390 or come visit our dealership to check out our new and pre-owned cars for sale near Fort Worth, TX. We hope to see you soon!