Finance Terms

COMMON FINANCE TERMS TO KNOW WHEN BUYING A CAR

If you are considering buying your very first new car, the process might feel a bit intimidating. But, with a little bit of knowledge, you can be prepared and well on your way to your first set of wheels. Here are some of the most common finance terms that you might encounter. If you have any questions about the car buying process or vehicle finance, Phil Moore Buick GMC in Jackson, MS is always here to help. Give us a call and we will walk you through the entire process.

CREDIT

When you hear terms like “good credit” or “bad credit,” this can refer to both your total credit history and your credit score. Whenever you take out a loan or get a credit card, this information is recorded on your credit report. Owing too much money or making a late payment can negatively affect your credit. Lenders will consider your credit score, your credit history, and other factors when determining whether to loan you money or not.

DEPRECIATION

This is the loss in a vehicle’s value over time. New cars depreciate rapidly within the first couple of years and slow down after that. Fortunately, our Buick and GMC models are loaded with state-of-the-art features, which will also slow down this process as well.

DOWN PAYMENT

Cash or other funds paid up front to lower the total amount financed for a car.

LEASE

This is an alternative way to finance a new car. You will sign a contract and make monthly payments. However, the payments are usually less than with a loan and you will return the car at the end of your contract.

MSRP

This stands for Manufacturer’s Suggested Retail Price, the recommended selling price set by the manufacturer. It is the price listed on the window sticker and includes any options. It is also called the “sticker price.”

DESTINATION CHARGE

The cost of transporting a new vehicle from the manufacturer to the dealership. It is included in the cost of a new car already.

New Sales/Used
Day	Open	Closed
Monday	9:00AM	7:00PM
Tuesday	9:00AM	7:00PM
Wednesday	9:00AM	7:00PM
Thursday	9:00AM	7:00PM
Friday	9:00AM	7:00PM
Saturday	9:00AM	7:00PM
Sunday	Closed	Closed
lunch at noon -1pm

Phil Moore Buick GMC