What auto loan terms should I be familiar with before I apply?

Auto loan terms to know

Auto loans can be relatively easy to understand, but if you aren’t familiar with some of the common terminology it can be very easy to become a little confused about the process.

For example, when you seeincredibly low auto loan interest rates advertised followed by the terms “OAC” or “WAC” you should know that this means “On Approved Credit” or “With Approved Credit.”

In other words, simply because these low interest rates are advertised it doesn’t mean that you will be approved with that particular rate. Only applicants with the best credit scores receive these rates, while all others are usually offered interest rates that are higher.

Another auto loan term that can be confusing is “We Finance Everyone” or similar wording. This type of claim is common at dealerships that do a lot of business with people who have less-than-perfect credit.

If an applicant’s credit is extrememly poor, the dealership will often require that applicant to make make a hefty down payment in order to secure the loan. In addition, loans given to those with less-than-perfect often carry higher-than-average interest rates and may include additional fees as well.

When researching your auto loan options, be sure to watch for these types of terms and be aware that the latest and greatest deals are often reserved for those with the highest credit scores.