Understanding the finance terminology when financing a car can often be confusing for many of our buyers at Ruxer Truck Center. Do you ever get confused too? A few of the most commonly misunderstood finance terms include the annual percentage rate, assignee and total cost.
The annual percentage rate, commonly referred to as APR, is a broader measure of the costs you pay for borrowing the funds to finance your vehicle. The higher your APR is, the more you pay throughout the contract term. The Federal Truth in Lending Act requires the lender to provide specific disclosures. Upon loan approval, the contract gets sent to the lender, and they become the assignee, even if it is a lender around Jasper. The assignee reserves the right of ownership until the entire loan gets paid in full. The total cost is the amount to buy the vehicle, plus interest, the downpayment and any other fees associated with the contract.