subject: Derby Used Car Dealers [print this page] The Lookers Trade Centre is more than just the usual Derby used car dealers as they also offer low financing rates for each and every car on the lot. In this time of an unstable economy, it is quite understandable that not all used car buyers expect to pay in cash. However, not all financing deals are the same as some may require you to make a larger-than-usual down payment or an extremely high interest rate.
In the interest of those who want to know more about financing a used car, here are helpful tips in order to help you decipher the varying terminologies that you will encounter when entering a financing agreement:
1.Capitalized cost the capitalized cost is the amount that needs to be financed after making the down payment. In short, this is the amount that you need to pay along with the interest rate. The capitalized cost will be amortized over a prescribed period ranging from 12 to 60 months, sometimes even longer. However, it best to avoid long financing terms as you will end up paying more money in the long run.
2.Cap cost reduction the capitalized cost reduction is the down payment or advanced deposit that you have to make at the beginning of the term. If you can afford it, try to make a larger down payment as this will significantly reduce the amount on your monthly payments.
3.Loan term as previously mentioned above, the loan can range from as low as 12 months to as high as 60 months. Financing deals that usually have short loan durations will usually come with lower interest rates than most.
4.Interest rate this is the amount that will be charged by the dealer or lender over the duration of the loan. The interest rate is influenced by current market forces and your credit score.
Always persist on Derby used car dealers to get the latest financing offers in the market.
