You've seen the seasonal car ads on TV promoting zero-percent APR. What does that mean? Visitors to BUDD BAER BUICK ask us this frequently. The answer is simpler than you think.
Zero-Percent APR
Zero-percent APR or financing refers to an auto loan with no initial interest rate. Interest is money paid to the lender, whereas APR includes both interest and other fees you may have to pay for the privilege of borrowing the money. This type of financing typically extends over a set period after which the interest rate on your auto loan kicks back in.
Actual Cash Value
When attempting to finance the purchase of a new vehicle, the value of your trade-in becomes quite relevant. Is it trade-in value or actual cash value? In many cases, they mean the same thing. Both terms refer to a dealership's valuation of your trade-in. However, ACV and trade-in value may not actually reflect the cash value of your vehicle when sold privately.
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Finance