If you are considering purchasing a stylish, feature-filled, and fun-to-drive new Mazda car, Mazda financing is something that you’ll likely need to navigate. Here at Russell & Smith Mazda, our friendly finance experts are happy to make the financing process streamlined and stress-free. That’s why we have compiled this handy glossary of Mazda financing terms to help you make informed decisions and drive off in your dream Mazda car.
APR (Annual Percentage Rate)
The APR represents the yearly cost of borrowing, including interest and fees, expressed as a percentage.
Down Payment
This is the initial payment made upfront when purchasing a vehicle, reducing the amount financed and lowering monthly payments. Experts recommend you make at least a 20 percent down payment on a new vehicle.
Lease
A Mazda lease allows you to drive a Mazda car for a set period of time while making monthly payments. At the end of the lease, you have the option to purchase the vehicle or return it.
MSRP (Manufacturer’s Suggested Retail Price)
This is the price suggested by the Mazda brand for a vehicle, including standard features and options, but excluding taxes, fees, and incentives.
Residual Value
When taking out a Mazda lease, this is the estimated value of the vehicle at the end of the lease term. A higher residual value can lead to lower monthly payments.
Term Length
The term length refers to the duration of the loan or lease, typically measured in months. Longer terms may result in lower monthly payments but can also lead to paying more in interest over time.
Title
The car’s title is a legal document proving ownership of a vehicle.
Get Pre-Approved for MAZDA Financing in Houston, TX
Now that you understand some of the main terms used during Mazda financing, head over to Russell & Smith Mazda to get behind the wheel. We look forward to matching you with a Mazda car that meets your needs!
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