One of the most important aspects involved in Burlington auto sales and similar industries in other cities is car financing. Different sources of car financing exist, and buyers can choose whether to pay with cash or credit. The intricacies of buying a car may be daunting for first time car buyers; here is an enumeration of car finance terms that can enlighten anyone who wishes to purchase a car in a dealership.

Dealer Sticker Price

Typically found on a car’s windshield, the dealer sticker price is an automobile’s public price. This gives the car manufacturer’s suggested retail price (MSRP) and determines the starting point of negotiations between dealer and buyer. There are instances when buyers pay the sticker price, and in some cases when the demand for a car is high, the seller puts a higher price for it. Paying the dealer sticker price is a safe option, but negotiating can further end in a win-win situation.

Dealer Invoice Price

The dealer invoice price is what the car dealer pays the car manufacturer. What goes between the dealer invoice price and the MSRP is the profit of the dealer and the amount a buyer can negotiate with. The price Burlington auto sales personnel offer is largely dependent on the required payment of dealers to manufacturers, and of course their profit. The dealer invoice price is susceptible to adjustments because a manufacturer manages profits along with the demand decline of a car model.

Annual Percentage Rate

This is the interest rate calculated every year and includes fees and charges of a loan. The annual percentage rate (APR) is constantly attached to a loan term. According to car finance experts, the APR is the most ideal way for consumers to compare financing schemes because this is where dealerships and lenders charge all kinds of fees and expenses.

Rebates

Rebates are like gifts to car buyers provided by car manufacturers to motivate the former purchase a particular model. These are usually presented as selling price reductions. These also offer more convenient car financing rates, also known as either-or offers. Rebates are typically appended to slow-selling car models.

Dealer Financing

This is when dealers not only sell cars, but also gain extra profit by giving loans and marking up interest rates. This is convenient for consumers because it gives the opportunity to buy a car and finance at the same time, particularly those with bad credit history. Loans are also applicable for car repairs and services such as those available in a Burlington auto service center, especially for customers who are on a tight budget.