Whether you’re searching for used cars for sale or you have an interest in one of the new Porsche cars in our showroom, you’ll find a luxury model that appeals to you at our Jacksonville, FL Porsche dealership. Many drivers who buy a new or pre-owned automobile from our location choose to finance at least part of their purchase.
We pride ourselves on making the car buying process a fun, stress-free experience. One way we accomplish that is by making sure people understand the terms we use when we discuss auto loans. Here are some of the terms you’ll probably hear when you apply for a car loan and what they mean:
- Interest Rate and APR: While some people will tell you that your loan’s interest rate and APR are the same, that’s not always the case. APR is the amount of interest you’ll pay on your loan every year. Whereas your APR is expressed on an annual basis, an interest rate may reference a different length of time. When these two numbers cover different time periods or you’re comparing loans, pay attention to the APR instead of the interest rate.
- Principal: The principal is the amount of money you borrow to purchase a vehicle.
- Title: Also known as a “pink slip,” a title is the document the Division of Motor Vehicles issues that identifies the owner of a car. If you’re borrowing money to purchase a vehicle, your lender will hold the title for your vehicle until you pay off your auto loan.
If you have a question about the meaning of a given finance term, we encourage you to contact our North Florida Porsche finance center. To find and finance a new or pre-owned premium automobile, head over to Porsche Jacksonville today.