At Centennial Toyota, we want you to feel empowered in all your decisions as a car owner. When it comes to Toyota finance, you may have a lot of questions and encounter a lot of new terms. Here is an overview of some vocab you should know when financing or leasing a car with us. 


When you finance a car, you are taking out a loan so that you can eventually own it outright. You have two main routes for financing a new or used car: direct lending or dealership financing. Direct lending involves borrowing money for a car from a bank, credit union, or finance company. 

You can also enter into a payment plan with the dealership. This is called dealership financing. The dealership then sells this debt to a bank or other third party, which is where the car buyer’s payments will go. 


APR, or annual percentage rate, refers to the cost you will pay each year to borrow money, and it is expressed as a percentage. The APR expresses your interest rate, along with the fees associated with getting the loan. The higher the APR, the more you’ll pay over the life of the loan. 


Some borrowers might need a co-signer, which is someone other than the buyer — such as relative or close friend — who pledges to pay back the loan if they cannot. Having a co-signer can give you a better chance of getting a loan if your credit is suboptimal. It also provides the lender with added assurance that they’ll get their money back. 

These are just a few of the common terms you’ll encounter as you explore your vehicle financing options. Contact our Toyota dealership in Las Vegas to learn more about your car-buying options today.