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Finance Common Terms at Coronet Mitsubishi

We here at Coronet Mitsubishi want to make your shopping experience as pleasant and trouble-free as possible. Buying or leasing a car can be overwhelming if you’re not familiar with all of the financial terms being thrown at you.​ ​ To that end, we’ve compiled a short glossary of common finance terms. This list is by no means exhaustive and if you have any questions, feel free to contact our finance department.

  • Add-on interestInterest that is calculated at the beginning of the loan and added to the principal. All of it must be repaid, even if the loan is paid off early
  • Base-priceThe cost of the car without add-ons. This price includes the standard equipment and the manufacturer’s warranty​ 
  • Blue Book Value - This refers to Kelley Blue Book estimate of a vehicle’s value, based on parameters like mileage and condition.
  • CarFax Report - A report of the vehicle’s history based on the unique identifier, or VIN, number. You can find information on the vehicle’s ownership, mileage, and accident history from this report.
  • Destination Charge - This is how much it costs to ship a vehicle from the manufacturer to the dealer
  • Dealer sticker price (or Monroney sticker price)The sticker on the car window that includes the base price, manufacturer’s installed options with the manufacturer’s suggested retail price, manufacturer’s destination charge, and the car’s fuel economy
  • Mileage Charge - A lease agreement contains a mileage restriction. Exceed that limit and you can incur a mileage charge.
  • MSRP - Stands for Manufacturer Suggested Retail Price.
  • Prepayment penaltyA lender’s charge to the borrower for paying off the loan before the end of the loan term
  • Rebate A manufacturer’s reduction on the price of the car
  • Residual Value - When a vehicle is returned at lease termination, this is the estimated value it will still hold.
  • Term - The length of a loan or lease agreement.
  • Trade-in Value - The amount that a dealership will credit you when you trade in your used vehicle.​ 

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Contact Information

3705 Frontage Road
Peru, IL 61354
Phone: (815) 390-9120
Fax: (815) 224-4458
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