Common Car Finance Terms Explained at MINI of Glencoe

During your search for a new MINI car, you’ll get to enjoy the anticipation of finding the car that is just right for you. However, you don’t want this experience to be diminished by anxiety. One common part of the car-shopping process that can be stressful for many drivers is the step of figuring out financing. Luckily, our MINI finance team here at MINI of Glencoe is here to guide you. One way you can prepare yourself is by reviewing common finance terms.? 

  • Interest Rate: when you borrow money from a lender, you will have to pay back both the cost of the car and some fees. These fees come in the form of an interest rate, which is a percentage of the cost of the car that you pay monthly.? 
  • Term: the amount of time that you spend paying back your loan is referred to as a term, Common terms for drivers range from 24 months to 72 months.? 
  • Down Payment: before you make your purchase and start making monthly payments, you will need to pay a fraction of the car’s cost upfront, which is called a down payment.? 
  • Rebate: dealerships provide financial incentives, called rebates, to encourage car-shoppers to buy. Common rebates include cashback, requiring no money down, or low interest rates.? 
  • Lease: you can sign an agreement to drive a new car without buying it for a set term, which usually lasts for 36 months.? 
  • Credit Score: this is essentially a “grade” you get for how well you have managed credit and paid back debt in the past. A credit score that is considered good is typically about 700 or more.? 

To learn more about financing a new MINI or about our inventory, contact our MINI dealership near Chicago today! 

Categories: Finance

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