Buying or leasing a new vehicle can seem like an overwhelming prospect. At Porter Chevrolet, we want to do whatever we can to make it less stressful. That is why we want to talk about some of the more common auto financing terms you will hear in Newark, DE.

The lender is the institution, typically a bank or a credit union, which is providing the loan. Principal is the initial amount borrowed, and your interest rate is the percentage that the lender is charging you for borrowing money. Your monthly payment will typically go toward both the principal and the interest of your loan.

Sometimes, there is a variable interest rate. This means it fluctuates as the prime rate does. A variable interest rate can be risky if you are taking a long-term loan because it may increase greatly during the time it takes to pay it back. A title is a legal document you will get from the local DMV to prove that you are the owner of the vehicle.

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