If you’re like many other drivers, you may want to finance at least part of your purchase once you find the BMW automobile you want. Alternatively, you might want to lease the BMW model that appeals to you. Either way, we encourage you to look through our current offers on auto loans and BMW leases now.
As you go through our offers, you may encounter some finance terms you’re not familiar with. With that in mind, we thought it would be wise for us to provide understandable definitions of some common financing terminology.
Here are some everyday finance terms and their meanings:
- Leasing: When you lease a car, you’re basically agreeing to rent it for a period of time that’s usually expressed in months. At the end of your lease contract, you’ll return your vehicle to the dealership.
- Financing: If you finance a car, you’ll take out a loan to purchase the automobile. Once you pay off your loan, you’ll own your car outright.
- Term: Term refers to the number of months you’ll have to repay your auto loan.
- Maturity Date: The maturity date is the date by which you’ll have to repay your car loan in full.
- Title: A title is a document which identifies the owner of an automobile. As a lessee, you will not receive a title or pink slip. If you took out an auto loan, your lender will send you the title to your car after you pay off your debt.
To learn more about common finance terms, contact our BMW finance center near Lynnfield, MA or visit BMW of Peabody today.