When you are tired of your current car, and you’re ready to get a new car, you have some choices to make. You can choose to plunk down a chunk of money on a new car that you then have to keep for years--or you can do something else. You can also make another choice. You can choose to lease your next car. There are several advantages to leasing, such as getting a new car every couple of years, and much more reasonable notes to pay. If you are interested in getting a leased car, you’ll need information on leasing and financing terms.

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What Are Some Terms You Should Know About Leasing or Financing a Car

Here are some really important leasing and financing terms you need to know. You may see the term APR. APR stands for annual percentage rate. That is the amount of interest you will be paying for your leased or financed car. Your annual percentage rate is determined by your credit score.

Another term that is used often in the car business is co-signer. If your credit isn’t good, or you have no credit at all, you may need to have someone help you out with the loan. A co-signer guarantees that if you don’t pay your note, they will bear the responsibility for paying your note for you. If you don’t pay your note, the technical term for failure to pay is defaulting. While we’re still talking about notes, you need to know that the principal of the loan is the amount of money you borrowed, and the term refers to the number of years you are borrowing the money for.

If you’re leasing a car, you need to know that you are called the Lessee in the contract. That means you are the person who is leasing the car and paying the bills.

When you’re ready to lease or buy your next Kia, we are here for you. Come by and see us at 1581 Hylan Boulevard, Staten Island, New York, 10305. You can give us a call at 718.727.7000.

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