Common MAZDA Financing Terms

If we were to break the car-buying process down into two phases, the first would be "finding the right car" and the second would be "financing it". The latter category can be a source of anxiety for many car shoppers, but our Mazda financial services team makes it easy by defining some key terms.

Finance Terms

If you're ready to buy one of our new or pre-owned Mazda models, it makes sense to familiarize yourself with some of the more common finance terms you'll likely hear during the purchase process. Here are several to get you started:

Annual Percentage Rate (APR)

When you finance your vehicle with a financial institution, you borrow the money necessary to make the purchase. The APR is the yearly interest rate you are charged for borrowing the money.

Down Payment

A down payment is a portion of a vehicle's value that you pay at the beginning of your financing agreement. This can help shrink the amount that you have to borrow, consequently lowering how much interest you pay over time. Many drivers use their Mazda trade-in to contribute to their down payment.

Lease

When you lease a vehicle from Colonial Mazda, you only pay a part of the vehicle's total cost - unlike a purchase, where you pay for the car's full value. Because of this, with a lease your monthly payments and down payment are typically lower than if you financed the car.

Principal

This is the original amount of money you borrow from your financial institution before interest is added. As you begin paying off this amount, it becomes known as the "principal balance".

Financing at Colonial MAZDA

Our Mazda finance professionals have years of experience in automotive financing. There's no question they can't answer, and they're wholly committed to helping our customers find the perfect financing package.

Whether you have low credit or are looking to establish/reestablish credit, worry not - we have plenty of options for you to explore. Through our online application, we make it easy to get pre-approved for financing. The application takes only a few minutes to complete, after which one of our financing experts will be in touch with you to talk further.

Let's Talk MAZDA Financial Services in Danbury, CT Today

The team at our Danbury, CT Mazda dealership looks forward to sharing our expertise with you. Visit our showroom today so you can explore our deep selection of Mazda vehicles and get the perfect financing package for your budget.