Finance and Lease Specials Available in Westport, CT

Getting Through the Technical Terminology of Financing and Leasing a Vehicle

Figuring out how the world of auto finance works comes with more than its share of frustrations. Fortunately, Honda finance for drivers around Stamford and Bridgeport is easier than you might think as the expert team at Honda of Westport is ready and able to answer any questions you might have. But as you look through our extensive online inventory, we'll break down a couple of basic terms you need to know.

Finance Terminology

More often than not, drivers don't have the full amount of a car's price just hanging around in their bank account. Hence, car financing must be done via a loan, which brings us to our first term, APR. APR stands for annual percentage rates and is essentially what it costs to take out a loan. APR combines the interest rate and any upfront fees that you may have to pay, so you get the best overall look at how much you'll be out.

When taking out a loan, you'll be given a term. The term represents how long the loan is in force and when you must pay it back by. Of course, you can reduce the amount of money you have to borrow by putting forth a trade-in allowance. This is the amount of money you can take away from the purchase price of a new vehicle, something we highly recommend all our customers do by valuing their trade through Kelley Blue Book.

Lease Terminology

If you aren't looking to finance a vehicle long-term, you have another option, leasing. Honda leasing in Norwalk is done generally in three-year intervals, so that customers can take full advantage of the manufacturer's warranty. The first thing you're going to want to know when you lease, is what a lessee is. Simply put, that's you and it's a term you will see pop up again and again, and on the flip side, the lessor is the company that is leasing the vehicle to you.

Another thing you'll need to know is your vehicle's residual value which is what the car you are leasing will be worth at the end. This is important because if you want to buy the car at the end of the lease, this is what you'll owe.

Honda financing is made simple at Honda of Westport no matter what type of vehicle you are in the market for. Drivers can sign up for a Honda lease in Fairfield or Norwalk to get one of the latest models in their hands as soon as possible.