Anyone who has ever applied for a car loan knows how confusing and intimidating the terminology used can be. The jargons used by auto financiers are terms they find convenient for putting across their points to the consumer. Most of the consumers find these terms very complicated and fail to understand the working of the auto loan due to which they end up striking deals, the consequences of which they might not be aware of. This is the reason for which anyone intending to get a vehicle financed should at least be aware of what commonly used auto financing jargons mean.

Here is an explanation of common jargons used in the world of auto financing:

1. Annual percentage rate (APR)-  This rate refers to the fixed or variable interest rate at which the lender is prepared to lend the loan amount over a specific period of time. A low APR does not necessarily mean a cheap loan especially if the term of the loan is a long one. A long term of loan will mean you have to pay a higher number of monthly installments, which will lead to more interest.
2. Loan term- This refers to the total period before your loan matures and is usually stated in months ranging from 24 to 84 months at the most. The significance of letting you know the loan term is to give you an idea as to when you are expected to pay off the loan.
3. Down payments- Down payment refers to an initial deposit that you make to your car seller and it is usually in the form of cash, a check, or a trade-in. It has an impact on your loan as the bigger the amount of down payment you make, the smaller your auto loan will be, and the more you will end up saving.
4. Trade-in- This term is used when you trade-in your old vehicle with the seller as a down payment for the new vehicle that you wish to purchase. However, it is subject to the condition as to whether the seller is ready to accept a trade-in or not.
5. Upside down- This term is used to describe a situation in which you owe more on the car you are purchasing than its fair market value. The cause for such a situation is the depreciation a car goes through within the first few months of its usage. The best way to avoid an upside down situation is to deposit a good amount of down payment.

To know more about Auto Financing in Texas, kindly visit us at Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

Buying a used car is a great option if you’re looking to save a few dollars, but it can be a tricky process. The car you select may have some hidden problems that you might not notice when you test-drive. Though the minor problems can be easily fixed, but these cars can also have major problems that may make you consider another car sooner than you expected!

The following points can help you to make more informed decision when purchasing a used car:

• Check car history: Even though no one can give you a guarantee that the car is perfect, it is worth the money that you will spend. The history report can help you find out problems the used car might have in the past, such as reported accidents, damage, rental use, etc.
• Inspect for common problems: Make notes about the VIN number, price, mileage, car’s features, what you like and what you don't like in every car you check. These notes will greatly help you in selecting as well as in the final deal negotiation.
• Check the car body: Take a walk around the car and look at the overall appearance of car. Look from all sides and check if the car sits at level or not. Often if the car is driven with a full load, the rear springs sag over time. And over the time, the wheel alignment may change, as the suspension parts wear out, which means tires will wear faster.
• Check the windshield: Check for cracks, scratches and other damages. These damages, if large enough, can cause the vehicle to fail the safety inspection and also the replacement may prove to be heavy on your pockets.
• Check the interiors: The condition of the vehicle interior is a good indicator of how well the car was taken care of. Mark any defects that you find like scratches, tears in the seat fabric, broken door handles, loose sun visors, etc. Be alert if you notice excessive use of the air freshener as these could be used to hide a bad odor. A bad odor in a car could be very hard to get rid of for a long time.

For more details, visit us at Greater Central Texas Federal Credit Union. We provide cheap and secured used car loans throughout central Texas. You can visit us at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.