Common Finance Terms to Know

Terms in Auto Financing: The Basics

Financing sometimes requires a language of its own, one reason many car shoppers get anxious when buying a new vehicle. That's why we at Rudig Jensen have put together a list of the most common terms in automotive financing, helping you to understand some of the words and concepts that may be used during the buying process.


  • APR - APR stands for the annual percentage rate. This is the annual rate of interest for borrowing money.

  • Blue Book - This term comes from the company Kelley Blue Book, a third-party that works to provide accurate, real-world values of cars. The "Blue Book" value refers to the amount your car is worth without any strings attached.

  • Credit - Your credit score or credit rating is a number from 300 to 850 that shows your creditworthiness. In other words, credit shows how likely you are to pay back a loan.

  • Depreciation - The amount of value a car loses over time. This can be linked to age or wear and tear.

  • Lease - This is a contract with a dealership that lets you borrow a car for a long period of time. Essentially, leasing is like renting.

  • MSRP - The Manufacturer's Suggested Retail Price (MSRP) is the price a brand recommends their car is sold for.

  • Title - Sometimes called the pink slip or certification, a title is evidence of ownership.

  • Trade-in Value - You can trade your car to a dealership in exchange for money or credit to buy a new car. Trade-in values are often sometimes more than the Blue Book Value because they are used as incentives.

  • Upside-down - If you're upside-down on a loan, that means you owe more to the lender than the car is worth-one reason many prefer to buy used or to lease.



These are some of the basic terms associated with auto financing. For more information, talk to the experts in the Finance Department at Rudig Jensen.


Contact

Rudig Jensen

1000 Progress Dr
Directions New Lisbon, WI 53950

  • Sales: (608) 562-3100

Hours

  • Monday 8:00am - 7:00pm
  • Tuesday 8:00am - 6:00pm
  • Wednesday 8:00am - 6:00pm
  • Thursday 8:00am - 7:00pm
  • Friday 8:00am - 6:00pm
  • Saturday Closed
  • Sunday Closed

MSRP is the Manufacturer's Suggested Retail Price (MSRP) of the vehicle. MSRP may not represent actual sales price. Price does not include applicable tax, title, license, and service charges. Pricing and availability may vary based on a variety of factors, including options, dealer, specials, fees, and financing qualifications. Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

* The estimated selling price that appears after calculating dealer offers is for informational purposes, only. You may not qualify for the offers, incentives, discounts, or financing. Offers, incentives, discounts, or financing are subject to expiration and other restrictions. See dealer for qualifications and complete details.

* Images, prices, and options shown, including vehicle color, trim, options, pricing and other specifications are subject to availability, incentive offerings, current pricing and credit worthiness.

* In transit means that vehicles have been built, but have not yet arrived at your dealer. Images shown may not necessarily represent identical vehicles in transit to your dealership. See your dealer for actual price, payments and complete details.