KIA CAR-BUYING TERMS GLOSSARY

Kia FinancingIf you’re looking to buy or to lease a Kia in Jenkintown, Rydal, or Glenside, Pennsylvania, you may already know all about the models and the features that you want. However, are you familiar with the terminology that will be used when you sit down to discuss financing?

If you’re not, our team at Sussman Kia has put together this Kia car-buying terms glossary. Read on to stay completely in the loop when obtaining funding.

Annual Percentage Rate (APR):

Used Car Buying GuideThe interest rate that will be charged to your loan. This rate will be applied to your loan balance on a yearly basis and is the amount your financing company will charge for the use of their funds.

Dealer Incentives:

Dealer incentives are discounts provided to a dealership by the manufacturer and, subsequently, passed on to the consumer as deals, special programs, or offers. Ask the finance center at your local dealership about any current dealer incentives.

Down Payment:

The down payment is what you pay at the time you purchase or lease a model. This amount is subtracted from the overall cost and has the potential to lower your monthly payments, depending on how much of a down payment you make.

Fair Market Value:

The fair market value is the amount of money that a model can be sold for locally. If you are leasing, this is the amount the model is worth, following the end of your lease period.

Lease:

Sell a Car to a DealershipA lease is a long-term rental that allows you to use a model for a set period of time—usually between two and three years. During the lease period, you will be required to stay within certain mileage limits. At the end of the lease period, you’ll need to return the model to the dealer, with the option to purchase it outright or to lease another model.

Manufacturer’s Suggested Retail Price (MSRP):

Also called the list price, this is the price that the manufacturer recommends a model be sold for and is displayed on its window sticker.

Pre-Qualify:

This is the process you go through to determine if a lender will finance your loan and the amount of funding they will offer you toward your purchase. This information assists in your decision-making process. However, at this stage, you do not have to commit to the loan.

Term:

Leasing vs financing at Kia dealer near Jenkintown, PAThe term is the duration of a loan or a lease. It is the agreed-upon amount of time during which you will make monthly payments on your Kia vehicle.

Trade-in Value:

If you have an existing model that you’d like to trade in when you purchase or lease your next model, this is the amount the dealer will pay you for it. This can be applied to your new loan or lease to reduce your monthly payments.

Chat with Our Finance Team About Your Next Kia Car

Now that you are equipped with more knowledge to assist you in the financing process, our experts at Sussman Kia will be happy to help you further. You’ll be better prepared to purchase or lease a Kia in Jenkintown, Rydal, and Glenside, PA, when you know what to expect, using our Kia car-buying terms glossary.

Stop in for a test drive and get rolling today!