Glossary of MAZDA Financing Terms

There are numerous Mazda financing terms you’ll encounter when you look into applying, and you may not be familiar with them all. You don’t need to be a financial guru to understand your terms, and that’s where the Sentry West Mazda team has you covered. Here’s a glossary of the essential Mazda financing terms every driver needs to know before they apply.

Monthly Payment

This is the amount you’ll pay on your financing plan each month. It includes all related payments, fees, and taxes.

Credit Score

Your credit score is a way for lenders to determine how trustworthy you are with borrowed money. Whether you lease or finance, we’ll check your credit score to ensure that you qualify for the terms you want.

Down Payment

The down payment is the amount of money you pay upfront for a vehicle at our Shrewsbury, MA, Mazda dealership. The minimum amount will be determined during your application process, but we recommend aiming for around 20 percent of your purchase price. A higher down payment helps keep your monthly payments lower.

Term

In the context of Mazda financing, the term refers to the length of time your financing plan lasts for. Typically, this will be three to four years.

Principal

The principal is the amount you owe on a vehicle before any interest or fees are calculated. You can think of it as the initial value of the car.

Depreciation

Depreciation refers to the rate at which a vehicle loses value over time. This rate will be outlined in your financing plan.

Trade-In Value

If you trade your current vehicle in when you finance, your terms will list the value we offered on the car. We’ll make the final Mazda trade-in determination on-site, but you can also get a quick appraisal your vehicle via our website.

Title

The vehicle title is the document that proves ownership of the vehicle. You’ll usually receive the title a few weeks after you finance a car, though some lenders will hold onto it until you pay the loan off. You’ll want to keep it in safe place, preferably a lockbox or safe.

Co-signer

A co-signer is a person who agrees to pay your loan if you fail to make your payments. They must be decided at signing. If your credit score is low, having a co-signer can boost your chances of getting approved.

Explore MAZDA Financing Terms in Shrewsbury, MA

If you want to know about other Mazda financing terms or definitions, we can assist you. Contact Sentry West Mazda today to talk with our financing experts and learn all about your plan. When you’re ready to finance a new Mazda model, our dealership can get your application started.