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RK Scion auto loan financing and Virginia auto insurance terms glossary gives you insider know how.

Lending has a language all its own, but it’s easy to understand once you know the important terms. RK Scion shares the inside scoop on commonly used lending terms in this glossary.

RK Scion / RK Chevrolet explains auto loan financing terms in everyday words to make your purchase easier:

  • APR - Annual Percentage Rate: Annual interest amount paid on loans, or the cost of borrowing money.
  • Buyer's Order: The tax, tag, title, and sales-related charges with every sale.
  • Co-buyer or co-signer: Two people buy a vehicle and both are responsible for car payments.
  • A credit application is a form you fill out that RK Chevrolet uses to determine your credit history.
  • Credit bureau: Agency gives credit history and credit score to creditors.
  • Extended service agreement: Lengthens the life of your vehicle’s existing warranty.
  • The FICO credit score (aka FICA credit score) is the most commonly used credit score. It’s calculated by a credit bureau and decides if you qualify for a loan and what interest rate you get.
  • MSRP: The Manufacturer’s Suggested Retail Price for a vehicle.
  • Residual value: Projected market value of a vehicle at the end of the lease or loan.
  • Virginia sales taxes are among the lowest in the country at 3% and collected at the time of sale.
  • Title: Required by your state Department of Motor Vehicles and indicates proof of ownership and vehicle lien information.
  • Trade-ins brought in by new car buyers are in the upside down loan category when the outstanding loan amount is more than the current value of the vehicle.

RK Scion explains commonly used Virginia auto insurance terms so you know what to buy:

  • The F&I Manager, or finance and insurance manager tells you about the finance and insurance terms of your loan.
  • If you have an accident or your car is stolen, optional GAP insurance provides extra insurance coverage if there is a difference between the vehicle value and what you still owe on the vehicle.

Your RK Scion salespeople welcome your auto loan financing and Virginia auto insurance questions.

You’ll benefit from the “open door” customer service policy at RK Chevrolet. Just stop in and ask, call us at 1-800-607-5206 or e-mail us - we’re happy to help!