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Making Sense of Auto Finance Terms

Is it APR or interest? What's the difference? Our finance team at Barber Honda fields these questions daily about auto finance terms. Here's their quick, simple rundown.

Annual Percentage Rate Demystified

The APR on your next auto loan is an amount owed expressed in a percentage. The amount includes loan interest and other fees. Interest is what you pay your lender for letting you use their money. APR fees are additional fees that you pay just for borrowing the money in the first place. When comparing auto financing options between makes, models, years and dealers, compare APR rates…

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Why it May Be Better to Trade in Your Vehicle

As many people are aware of, owning a vehicle is very expensive. To make matters even more uncomfortable, there is no way to predict whether one is going to have an adequate source of income for paying off their vehicle in the time it would take to pay it off.

It might be better to trade in your vehicle than to refinance it. One of the reasons that it may be better to trade it in is that it may be getting ready to breakdown completely leaving you with a dead vehicle that you may still be paying off.

If…

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Refinancing vs. trading in your car

There are a ton of drivers out there who have refinanced their cars for better interest rates. Sometimes it’s worth it to see what you can get for your old vehicle. In other cases, it would be a better investment to get into a newer car for a better interest rate. In either case, you are looking at changing the spending each month for your vehicle. If you want to get into a good vehicle that you can afford, then you’ll need to check that the interest rate and monthly payments match your budget.

For those drivers who…
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