Back to basics...
As a first time car buyer the stress of making the right choice for you while having everyone through their opinions and suggestions at you can be overwhelming. Don’t worry your not the only one, but it can be really helpful to know the basics that will build your knowledge to being a better driver and help you make the best decision for you.
Here are some terms you would want to know:
- Fuel type: also known as the octane rating (91, 95, 98) the fuel’s ability to knocking/pinging during combustion which is caused by the air and fuel mixture exploding early in the engine.
- Odometer: an instrument used to measure the distance travelled by a wheeled vehicle.
- Cylinders: the force unit of the motor, where fuel is singed and into mechanical energy that controls the vehicle.
- VIN: vehicle identification number is the unique number used by the automotive industry to identify all vehicles.
- Car Warranty: a guarantee from the maker of the vehicle to amend shortcomings that occur during the guaranteed times frame.
- Vehicle Finance: allows people to borrow amounts of money to buy a car.
Types of Vehicle Finance
| New Car Loan | Available for brand new cars and are secured by the value if the car. |
| Used Car Loan | Available to to cars not qualifying for the New Car Loan, cars 5-6 years old may be too old to for this loan and move to an Unsecured Loan. |
| Secured Loan | When the bank holds power over the car and if in the situation you cannot repay the loan the bank can sell the car to obtain the money. |
| Unsecured Loan | Where the car as not used as collateral or security for the loan. The lender decides on eligibility based on the borrowers credit score. |
| Fixed Rate Loan | Includes an interest rate up application for the duration of the loan term. Protects from rate fluctuations but comes with more restrictions. Extra or early repayments cannot be made or a fee must be payed to do so. |
| Variable Rate Loan | Variable rate of interest, repayments could fluctuate if market interest changes. Interest rate may increase or decrease though the loan term. |
| Car Dealership Financing | Loan that is originated by retailer for customers, then sold to a bank or third-party institution. |