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Many car buyers feel financing is the most stressful part of car buying. Being familiar with the finance process and auto finance terminology can be helpful. Here is some common auto finance terminology.

• Amortization table – The amount of your monthly payment including interest and principal.
• APR (annual percentage rate) – The amount you’ll pay for interest on the principle and additional fees.
• Collateral – What the bank holds as insurance to ensure you pay the loan. It’s usually the vehicle.
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You may be wondering if it's in your financial best interests to refinance your car loan. You might also wonder if you should trade in your vehicle. There are certainly pros and cons to each choice, and the one you pick will need to reflect your particular financial situation.

An aging car is a liability in more ways than one. If your car is not long for this world, you'll have trouble refinancing it, as lenders view it as a risky investment. You're better off trading it in for a different model.