Mitsubishi Finance Terms You Should Know
Drivers who have questions about Mitsubishi finance should contact the pros in our Mitsubishi financing center for answers they can trust. Car shoppers often ask us about the meaning of specific terms commonly used when discussing auto loans and leases. For that reason, we’ve composed a list of terms you should know before you purchase or lease a vehicle.
Down Payment
Whether you want to buy or lease one of the new Mitsubishi models on our lot, you may have to provide a down payment. Also referred to as “money down,” a down payment refers to the money you pay upfront when you sign your loan or lease agreement. The larger your down payment, the less you’ll need to finance.
Equity
The difference between what you owe on your vehicle and your car’s value is known as equity.
Negative Equity
Owners and lessees who’ve been making payments for some time may wonder what negative equity is. Your car has negative equity if you owe more than its current worth. People with negative equity in their vehicles are often said to be “upside down” or “underwater.”
Interest Rate
This is how much a lender charges you to borrow money. Although many people use them interchangeably, the interest rate and your APR aren’t the same. Your annual percentage rate accounts for factors besides bank fees, such as marketing costs, making it a more accurate expression of what you’re paying for your car.
MSRP
Shorthand for the manufacturer’s suggested retail price, MSRP is the amount the Mitsubishi team suggests we sell a vehicle for. Because it’s a recommendation, the price paid at our Mitsubishi dealership in Normal, IL, may vary.
Trade-In
Many drivers trade in their existing car when they buy or lease a different model at our location. A trade-in is a car you intend to sell to our Mitsubishi dealership. You can use our value your trade tool to estimate your current vehicle’s worth.
Title
Also known as a “pink slip,” your car’s title identifies who owns the automobile. Until you pay off your car loan, your lender will retain possession of your title.
Put Your Knowledge to Work at O’Brien Mitsubishi of Normal
Now that you’re familiar with some Mitsubishi finance terms, it’s time to put your knowledge to good use. Visit O’Brien Mitsubishi of Normal to buy or lease a new Mitsubishi model or purchase one of our pre-owned vehicles today.