Common Vehicle Finance Terms | Ponca City, OK
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The lender is the establishment you get your auto loan from. This could be from a bank, a credit union, or through the car dealership itself.
The principal is the amount of money loaned from the lender.
APR—or annual percentage rate—is the amount of interest you pay on your loan each year, and is calculated from the loan agreement.
This term refers to having a fixed schedule for payments on an auto loan over a fixed period of time. With this process, you pay more on interest at the beginning of the loan agreement. As the interest decreases in relation to the amount left due, payment on interest decreases as well so that later payments are less towards interest and more towards the loan.