We at Muller Toyota know that some financing terms can be confusing when it comes to buying a new vehicle. To help everyone out, we have gathered answers to some of the most frequently asked questions.
Which is better: dealership or direct financing?
Saying which is better is difficult, as it depends on your individual circumstances. Directly financing means it's through a bank or credit union. Dealership financing means that you are in a financial agreement with the dealership. The dealership will then work with a financial institution. Both ways have pros and cons, so choosing the best option for you requires a bit of investigation, which we would be happy to help you with.
What is the benefit of co-signing?
Co-signing is an option if your credit score is low or if you have a weak credit history. By having a co-signer, you may get a better interest rate then if you sign the loan on your own. Your co-signer is agreeing to pay the loan if you fail to do so.
What is an MSRP?
The MSRP is the suggested manufacturer's price. In the automobile world, it is considered to be the vehicle's "sticker price." This price is the recommended selling price, but can sometimes be negotiable.
What does APR mean?
APR is the abbreviation for the "annual percentage rate of charge," which is a loan's annual interest rate. This number is usually a percentage.
We hope these answers help clear up some of the financial jargon that you may encounter when buying a car. If you have any more questions, visit us at Muller Toyota and we will be happy to assist you.