Toyota Financing for Beginners

 

There’s nothing much more exciting than driving off the dealership lot in a new Toyota car, especially if it is your first time buying a car. However, before you get to that point, you need to find a way to pay for the car. While some people can afford to pay in cash, the majority of buyers at Bell Road Toyota opt for the Toyota financing route. Our finance professionals know that car financing can sometimes be tricky, which is why we’ve put together this guide for Toyota financing for beginners.

Car Finance Vocabulary

The world of automotive finance has its own vocabulary that some buyers may find intimidating. Here are some of the key terms that we use at our Phoenix Toyota dealership.

·       Loan amount: The loan companies and banks determine how much money they are willing to advance to a borrower. This amount is based on the value of the car being purchased and the ability of the borrower to repay the loan, which is based on their income and debt.

·       Down payment: The amount that the buyer must pay upfront in order to finance the car.

·       Interest rate: The interest rate that you’ll pay every month varies based on your credit score, the finance company’s policies, and whether the loan is on a new or a pre-owned vehicle.

·       Term: The total length of the loan. The longer the loan term, the lower the monthly payment, but longer loan terms often also have higher interest rates.

·       Monthly payment: The amount that you pay every month will include both the repayment of the principle and the interest rate.

To learn more about Toyota financing, contact a friendly professional here at Bell Road Toyota.