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Common phrases
Here are some common phrases you might encounter when buying a car.
- Total purchase price (before tax): This is the total cost of your auto purchase. Include the cost of the vehicle, any additional options and any destination charges. Don't include sales tax in this amount. Sales tax will be calculated for you and included in your total after tax price.
- Financing Term: Number of months for your auto loan. VyStar offers flexible terms to get your payments where they need to be.
- Cash down: Total amount of cash used in a purchase. The larger your cash down payment is the smaller the loan amount will be.
- Trade allowance: The total amount that you are given for any automobile that you trade-in as part of the purchase. In some states a trade-in can also reduce the amount of sales tax you will owe.
- Amount owed on trade: Total loan balance still outstanding on the trade-in.
- Sales tax rate: Sales tax percentage rate charged on this purchase.
- Credit Application: The information a buyer submits when applying for a loan. At VyStar, this can be done in person, over the phone or electronically via Internet Banking.
- Credit Score: A numerical score that reflects the credit risk you present based on the information contained in your credit file. The better your history of credit the higher your score.
- Creditworthiness: The ability of a consumer to satisfy their credit obligations.
- Down Payment: An amount paid at the time of purchase that reduces the amount financed.
- Dealer financing: The incentive interest rate you may be able to receive from an auto manufacturer. These rates can be below standard auto loan interest rates. Most manufacturers allow you to choose either dealer financing or a manufacturer rebate, but not both.
- Zero percent: No interest loans advertised by auto dealers. Most 0% financing is short term, payments are high and there’s a chance you won’t even qualify. They can also come with fees and hidden conditions. With a VyStar no-fee auto loan, you can purchase the vehicle you want and not be forced to buy only the vehicles that qualify for dealer financing "specials". Plus, our competitive rate combined with a dealer incentive or manufacturer rebate can save you more in the long-run.
- Manufacturer rebate: A cash rebate paid by the auto manufacturer to you when you purchase a new vehicle. Most manufacturers allow you to choose either low interest financing or a manufacturer rebate, but not both. Having a VyStar pre-approved loan will allow you more time to negotiate and take advantage of dealer incentives and manufacturer rebates.
- Credit union financing: The interest rate you may be able to receive from a credit union. This sometimes can be higher than the manufacturer's dealer financing, but is often very competitive when used in combination with a dealer incentive or manufacturer rebate.
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