Financing FAQ
Shopping for a new or used vehicle is a process that involves many choices. One of the most important choices you’ll have to make about your purchase is how you’re going to pay for it. And while many drivers dread thinking about auto financing, it’s actually less complicated than it may seem. Having a strong understanding of auto financing basics gives you a huge leg up when the big day comes. Not sure where to start? Here is a quick primer on car financing basics.
Basic Terms
Principal
The principal refers to the dollar amount of a loan. When discussing auto financing, this usually means the total price of the car, minus a down payment. The principal is the amount of money you will need to pay back to a lender over a predetermined length of time. Importantly, the principal does not include interest that will accrue on the initial loan amount.
Interest Rate
Interest is the cost of taking out a loan, which you will pay back in addition to the principal. Usually stated as APR (annual percentage rate), interest is a fixed rate that is added onto monthly payments toward the principal.
Down Payment
A down payment is a dollar amount paid up front toward the total price of the car. The higher your initial down payment, the less you will have to borrow. If you make a big down payment, you’ll be able to make lower monthly payments or cut down the length of the loan.
New vs. Used & Dealer vs. Bank
New Vs. Used
Whether you’re shopping for a new or used car, one of the main factors for determining monthly payment amounts is the principal loan amount. Since used vehicles tend to be less expensive than new vehicles, buying a used vehicle frequently leads to lower monthly payments.
Dealer Vs. Bank
Getting a loan through the bank and through the dealer both have unique benefits. Going through the dealer is often a great option, as it saves you time by allowing you to take care of financing right at the dealership. You’ll also have access to the dealership’s wide pool of resources, so you can get the best deal possible.
Come to Dewey Barber Chevrolet, where the experts in our finance department will be happy to assist you in the car-buying process.
Hours of Operation
| Monday | 8:00AM - 6:00PM |
| Tuesday | 8:00AM - 6:00PM |
| Wednesday | 8:00AM - 6:00PM |
| Thursday | 8:00AM - 6:00PM |
| Friday | 8:00AM - 6:00PM |
| Saturday | 8:30AM - 5:00PM |
| Sunday | Closed |
| Monday | 7:30AM - 5:30PM |
| Tuesday | 7:30AM - 5:30PM |
| Wednesday | 7:30AM - 5:30PM |
| Thursday | 7:30AM - 5:30PM |
| Friday | 7:30AM - 5:30PM |
| Saturday | Closed |
| Sunday | Closed |
| Monday | 8:00AM - 5:00PM |
| Tuesday | 8:00AM - 5:00PM |
| Wednesday | 8:00AM - 5:00PM |
| Thursday | 8:00AM - 5:00PM |
| Friday | 8:00AM - 5:00PM |
| Saturday | Closed |
| Sunday | Closed |