Here at MINI of Charleston, our finance team strives to keep auto finance as simple and accessible as possible. Once you understand the major terms, it's easier to appreciate the entire process. Take the following terms for example.
Actual Cash Value
Also called trade-in value, the ACV reflects a given dealership's official valuation of your vehicle. It may not necessarily match the value listed in KBB nor the selling price of your car on the open market. ACV only comes from a dealership, so it's helpful to obtain. It's the only amount that counts toward your vehicle's trade-in value as you continue doing business with that particular dealership.
Annual Percentage Rate vs. Interest
The APR and the interest rate are both percentages, but they refer to different numbers. Interest is the cost you pay to borrow and use someone else's money. The APR is an annual fee expressed as a percentage. It includes the interest as well as a host of other fees you must pay just to apply for an auto loan, have it processed and receive the money.
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