Shopping for a used car in Paducah can be overwhelming, especially if you are a first-time buyer or haven’t in a while. We at Chip Wynn Motors want to make this process stress-free for you. That’s why we’ve made financing a car loan clear and simple for you. Here’s a helpful glossary of terminology you should know when buying a used car.
APR: Basically, this is the total cost you pay for taking out a car loan and is expressed as a percentage. It primarily consists of interest.
Blue book value: This is the value of a used car, truck, or SUV according to an evaluation by Kelley Blue Book. It affects the trade-in credit and sale price of.
Cosigner: When you take out a car loan, you can have a second person sign their name next to yours on the paperwork. This person is also responsible for making sure the loan is repaid on time. And may earn you a better interest rate if they have better credit than you do.
Credit history: Your credit history helps us determine the right type of loan for you. Credit bureaus develop a score for you based on your personal borrowing history. The better you have been at repaying loans promptly, the better loan offer you are likely to get.
Depreciation: Over time, the value of a car can decrease from its original value due to age, condition, and popularity. When you buy a used car, it’s already depreciated in value from when it was brand new, which is why the price is now cheaper.
Down payment: This is the amount that you pay upfront for your used car. The larger your down payment, the lower your monthly payments will be throughout the course of your loan.
Lien: Until you pay off the loan you’ve taken to purchase a car from Chip Wynn Motors, the lender still owns your car. The ownership of the vehicle by the bank or finance company is called a lien.
Title: This is the legal document from the Department of Motor Vehicles that shows ownership of a vehicle. Until you have paid off your car in full, the lending institution will retain the title.
Chip Wynn Motors is dedicated to making the car-buying process straightforward and understandable. We’re here to answer all of your questions, so contact us when you’re ready to shop for a used vehicle in Paducah, Kentucky.