MAZDA Financial Terms to Familiarize Yourself With

Car loans and leases can seem daunting. However, with a few terms in your grasp, you should have no problem dealing with Mazda financial dealings. Here are the ones you need to familiarize yourself with.

MSRP

This stands for Manufacturer’s Suggested Retail Price. In other words, the suggested value of the vehicle, before any packages, taxes, or available features are added.

Principal

The principal of a loan is the amount you are actually borrowing for the vehicle itself. It does include taxes and fees, but not interest rates.

Total Cost

The principal with the interest added in. In other words, the full amount you’ll pay on the loan.

Term

The amount of time the loan will take to pay off, usually expressed in months.

Down Payment

The amount of money you pay up front. This reduces your loan amount and often the interest rate you’ll have to pay.

Trade-In Value

The value of the vehicle you are trading in when you purchase or lease a new one.

Dealer Incentives

These are special programs that the manufacturer (like Mazda) offers on certain vehicles.

Early Termination Charge

A fee you must pay if you end a lease before the agreed-upon term has elapsed.

GAP Insurance

An insurance policy that specifically covers the value left unpaid on a loan or lease if the car has a total loss accident.

Visit the El Dorado MAZDA Financial Center to Learn More

Whether you are a Master of Finance or a complete beginner, the El Dorado Mazda team will be in your corner. Our financial team can help you at every step of the process. We look forward to working with you no matter what!