Question by  thelostone (1457)

What are "finance terms?"

I'm trying to buy a car and there's all this talk about "finance terms." I feel a little bit stupid that I don't understand.


Answer by  smartmoney (30)

This refers to the terms associated with the loan for your purchase. The terms include length of loan, interest rate, down payment, total loan amount, repayment methods, and so on. It is extremely important to understand the terms of the loan, make sure that all of the information is accurate, and know who to contact if you have questions.


Answer by  tamarawilhite (17883)

The primary finance terms are the duration (how long you make payments), APR (annual percentage rate for interest), and monthly payments. Avoid any balloon payment,. Do not allow "negative equity"; that is rolling an old loan into the current one and paying payments on the new, higher debt. You then owe far more on the car than it's worth.

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