Automotive Finance Terms for Car Buyers in Stillwater, OK
Financing a new vehicle can be complicated, and if you don’t know the basics, you might end up with a loan that doesn’t work for you. Here are a few auto finance terms to help you understand the particulars of financing a new Buick or GMC from Wilson Buick GMC.
APR
The annual percentage rate is an annual rate that calculates the total cost of borrowing money over a year. That’s different than the monthly interest rate.
Interest rate
Interest is the money a bank charges on top of the cost of the vehicle for allowing you to borrow money from them. The interest rate is typically a much lower percentage than the APR.
Fixed rate vs. variable rate
A fixed interest rate means the interest rate you receive when you get a loan will stay throughout the loan unless you refinance. A variable interest rate means the lender can raise or lower the interest rate based on outside factors throughout the loan’s duration.
Dealer-arranged financing
This is when the dealership reaches out to banks to apply for an auto loan on your behalf. You can also get financing directly from the dealership or seek an auto loan from an outside lender like a bank or credit union.
GAP insurance
Guaranteed Auto Protection (GAP) insurance is an additional insurance policy that comes into play if your vehicle is totaled or stolen. GAP covers the difference between the remaining amount of your loan and what your insurance company is willing to pay.
Loan term
The length of your loan, usually ranging between 36-72 months. A longer loan term will have lower monthly payments, but you’ll pay more in interest over time. Conversely, shorter loan terms carry higher monthly payments but save money on interest.
Principal
Principal is the initial amount of money you borrow with the loan before interest is applied. Usually, a portion of your monthly payment goes to paying off the principal, and the rest is applied to interest.
The finance experts at Wilson GMC Stillwater would be glad to explain more about how you can buy or lease a new car in Stillwater at a great rate. Contact us to schedule an appointment.
Wilson GMC Stillwater
4700 West 6th, Stillwater, OK 74074
Sales 877-525-1795
Service 877-526-1001
Parts 405-937-1230
Hours of Operation
| Monday | 9:00AM - 6:30PM |
| Tuesday | 9:00AM - 6:30PM |
| Wednesday | 9:00AM - 6:30PM |
| Thursday | 9:00AM - 6:30PM |
| Friday | 9:00AM - 6:30PM |
| Saturday | 9:00AM - 6:00PM |
| Sunday | Closed |
| Monday | 7:30AM - 5:30PM |
| Tuesday | 7:30AM - 5:30PM |
| Wednesday | 7:30AM - 5:30PM |
| Thursday | 7:30AM - 5:30PM |
| Friday | 7:30AM - 5:30PM |
| Saturday | 8:00AM - 2:00PM |
| Sunday | Closed |
| Monday | 7:30AM - 5:30PM |
| Tuesday | 7:30AM - 5:30PM |
| Wednesday | 7:30AM - 5:30PM |
| Thursday | 7:30AM - 5:30PM |
| Friday | 7:30AM - 5:30PM |
| Saturday | Closed |
| Sunday | Closed |