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Common Auto Finance Terms in Woodstock, GA

Buying or leasing a new Ford is incredibly exciting, but we know that many of our customers dread the final part of the process: financing. Here at Krause Family Ford, we work hard to make financing as easy and pleasant as possible, whether it’s your first time buying a car or you’ve done this many times. As you’re getting ready to visit our dealership and choose your new or used vehicle, you can prepare by reading over the common finance terms below. You’ll probably hear these terms when you meet with one of our friendly and experienced finance experts, and whether you’re unfamiliar with these terms or just need a refresher, we want you to be confident as you seal the deal and drive home in the perfect vehicle.

Financing

When you finance a vehicle, you pay for it over time rather than paying for it in full at the dealership. In order to do this, you’ll take out a loan and pay it back with interest.

Interest

Interest is the cost for borrowing money, commonly expressed as a percentage. The interest amount will be included in your monthly car payments.

Leasing

When you lease a vehicle, you pay to drive a new car for a certain period of time without owning it. Once your lease ends, you may have the option to purchase the vehicle or you can return it to the dealership.

Term

The term is how long you have to pay off your auto loan. This can also refer to the duration of a lease.

Principal

The principal is the loan amount without interest or other fees added.

Down Payment

At the dealership, you make a down payment when you first finance or lease a vehicle. The amount you will pay will depend on your situation, but the more you pay up front, the less you’ll have to pay over time.

Cash Back

Manufacturers sometimes offer cash back on certain vehicles as an incentive to buy. Cash back is a type of rebate that you can apply towards your down payment or receive later as a check.

Trade-in

We’re always looking for trade-ins here at Krause Family Ford! It’s easy to find your current car’s value online, then you can bring it to us and we’ll give you an offer that you can apply to the purchase of your new or used vehicle. This can help you save quite a bit on your purchase!

Depreciation

Depreciation occurs as a vehicle loses its value over time. This happens to all vehicles, and the process starts as soon as a new model is driven off a dealer’s lot.

Equity

Equity refers to how much of your vehicle you own (as compared to how much the bank still owns via your loan). Equity is calculated by subtracting how much you still owe from the vehicle’s value. For example, if the vehicle is worth $20,000 and you owe $5,000, your equity is $15,000.

Upside Down

You want to avoid being “upside down” on your loan. This is a situation where you owe more on your vehicle than what it’s worth. This is also known as having negative equity.

If you have questions about our finance process or want to learn more about these finance terms, please let us know. Give us a call, contact us online or stop by Krause Family Ford at 195 Woodstock Parkway Woodstock, GA 30188 , near Canton, Holly Springs and Kennesaw. We look forward to working with you.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

Trade appraisals are estimated values. These values could increase or decrease based on condition, mileage and availability. The advertised price does not include sales tax, vehicle registration fees, finance charges, Georgia Lemon Law and any other fees required by law. All prices include all applicable factory rebates, factory discount, dealer discount, $199 electronic filing fee and $899 documentation fee. Some discounts and factory rebates may require financing with Ford Credit and where applicable factory trade assistance requires a 1995 or newer trade vehicle. Prices subject to change without notice based on Ford Motor Company incentives. However, there can be lag time between the sale of a vehicle and the update of the inventory. See dealer for full details on pricing, dealer discounts and Ford incentives. Limited availability while supplies last. Some exclusions may apply. Online prices may include dealer financing incentives and offers that require additional qualifications. See dealer for complete details. Vehicles shown at different locations are not currently in our inventory(Not In Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed 1 week. Additionally, we do not and cannot guarantee that every vehicle sold will be recall free. For questions about recalls, click here. Please verify any information with Krause Family Ford. By providing a telephone number and submitting the form, you are consenting to be contacted by SMS text messages from Krause Family Ford. Message frequency may vary. Message and data rates may apply. Reply STOP to opt-out of further messaging . Reply Help for more information. See our privacy policy.

Krause Family Ford of Woodstock