If you're a first-time car buyer in Turnersville, Cherry Hill, or Mount Laurel and you're unsure about the auto loan process, Prestige Subaru would like to provide you with some assistance by going over a few of the basic car loan terms that you'll be coming into contact with. Take a look at each one to get a firm understanding of the overall process of getting an auto loan.

If there are any questions that come to mind while you're reviewing the list below, feel free to stop by, give us a call, or send an email. Our staff will be more than happy to give you a more detailed explanation.  

1. Car Loan

First and foremost, it's important to be familiar with this term as it is the name of the agreement that you will be making with your lender. The car loan states that they will agree to provide the money for you to purchase the vehicle. It also says that you agree to repay that money over a certain time period. This term is also known as auto loan as well as car financing.

2. Car Loan Term

The car loan term is the length of the loan itself. It is commonly referred to in months. For instance, a five-year car loan term would be described as being 60 months long. It's helpful to remember that the longer the term is, the higher the interest rate will be. For this reason, it's generally a good idea to try to get a relatively short car loan term.   

3. Down Payment

The down payment is the amount of money that you put down on the car up front. The money that you pay back throughout the duration of your loan will make up the difference between this number and the total price of the vehicle. As a result, this payment is quite important because it determines the size of your loan payments, the duration of the loan, and the amount of the loan itself.

4. Monthly Payment

This one is also referred to as a car payment and is the amount that you will be responsible for paying each month during your loan.  

5. Interest

Each month, you will be responsible for paying a certain amount of money in addition to your monthly payments. This is the interest on the loan. It is the cost charged by the lender for lending you the money to purchase the vehicle. One way to help get a lower interest rate is to cultivate a healthy credit score.  

Meet with One of Our Finance Specialists Today

Now that you're familiar with the top five auto loan terms, you're ready to get started on your journey toward becoming a full-fledged car owner. If you call Turnersville, Cherry Hill, or Mount Laurel home, the next step is to come down to our finance offices to get the ball rolling. Simply contact Prestige Subaru to schedule a convenient time for your appointment.

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Prestige Subaru of Turnersville NJ

4271 Black Horse Pike
Directions Turnersville, NJ 08012

  • Call or Text Sales: 856-629-9200
  • Service: (856) 629-9200
  • Parts: (856) 629-9200


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