Buying a new car can sometimes be a daunting experience. Just like any other industry, dealerships have their own phrases and terminology. To help make your car buying experience better, here is a list of some common finance terms you’ll hear while in the F&I (finance and insurance) department.
Documentation fees: These are the fees associated with preparing all the paperwork needed to complete the purchase or lease process.
GAP Insurance: This isn’t insurance from the trendy clothing store. It stands for Guaranteed Auto Protection. If your car is stolen, or damaged beyond repair, this coverage will pay for the difference in what you still owe on your loan and what the car is worth, in case you still owe more than the car’s value.
Annual Percentage Rate (APR): This is the percentage of interest you will have on your loan. The lower this number is the better.
Extended warranty: When you buy a new car it comes with a warranty. However, this warranty only lasts for a specified amount of time or miles. You can purchase an extended warranty, which adds additional time or miles to the original factory warranty.
We at Basney Honda hope this list will help you during your next visit. Feel free to contact our Finance Department with any questions you have while planning for your next car purchase, or visit us in South Bend, IN near Mishawaka, Notre Dame, Elkhart, Goshen and Granger.