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Common Auto Finance Terminology You Can Understand

How familiar are you with auto finance terminology? If you're like many buyers around Nederland, it's not something that rolls off the tip of your tongue. But it can be after today with a few of the most common terms Philpott Pre-Owned Super Center has to share!

First, the "annual percentage rate" is the total cost you will pay each year to borrow money from a lender. This amount includes interest and fees associated with the loan. 

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Frequently Used Auto Financing Terminologies

Here are some of the frequently used auto financing terminologies that you should know before going to a dealership:

Fair Debt Collection Practices Act – it is illegal for third parties to collect debts for another person or company, thanks to the federal debt collection practices.

Guaranteed Asset Protection – It is also abbreviated as GAP. When a person has negative equity or is underwater on their auto loan, there are products on the market designed to safeguard them in case an accident occurs.

Lease – paying in installments rather than in full for a vehicle, 

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