Explaining Finance Terms at Mike Anderson Chevrolet of Chicago

March 13th, 2020 by

If you’re looking to purchase a new Chevy car, chances are you’re going to have to discuss financing at some point. But what does auto financing actually mean? At our Chevrolet finance center in Chicago, we’ll give you all the information and guidance you need to make the most educated decision possible, and part that involves defining some key financing terms.

What is Auto Financing?

Regardless if you’re buying new or even leasing, cars cost money, and how you pay for a vehicle can truly define your experience behind the wheel. For instance, when you’re purchasing a brand new car, typically you’re financing the total cost of the vehicle through the use of an auto loan. These auto loans can vary in size and interest based on a number of factors, but two of the most defining factors are credit score and down payment. The better your credit score and the bigger your down payment, the less you’ll likely be paying on a month-to-month basis.

Certified pre-owned and pre-owned cars also require an auto loan for financing, but these vehicles tend to be much cheaper than their brand new counterparts. As a result, you’ll have to finance for less. Pre-owned vehicles can be a great alternative for anyone who wants to purchase a car on a budget.


Leasing allows you to finance the depreciation of your vehicle while you own it. Auto leases are temporary, and throughout the course of the lease, you’ll be expected to pay for the vehicle’s depreciation of value.

Financing can be an intimidating subject when it comes to purchasing a car, but fortunately, at our Chicagoland Chevy dealership, we make it simple. Our finance team at Mike Anderson Chevrolet of Chicago will make sure that you have all the details so that you can end up with the best deal possible.

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