Common Financing Terminology

Common Financing Terms | Cincinnati, OH




Part of purchasing or leasing a new Volkswagen at Joseph Volkswagen of Cincinnati is signing on the dotted line. While our finance team will work hard for you to make the process as simple and stress-free as possible, you may hear some words or phrases you’re not familiar with. Because we want you to feel comfortable and involved, here’s some of what you might expect to hear.


APR, or annual percentage rate, is your interest rate for a whole year. APR is calculated based on the amount that you borrow, so it gives you a firm idea of how much you can expect to pay over the full life of the loan.

Bill of sale

When you’re getting ready to sign for your vehicle, the bill of sale is a document that we’ll prepare to record the details of the sale.

Blue Book/Black Book

Blue Book is the informal way of referring to Kelley Blue Book, which is the industry standard for vehicle valuation. If you’re getting above Blue Book value on your trade-in or below Blue Book value on your purchase, you’re doing better than the average shopper. Black Book is a similar, but less-often-used, resource that uses information for wholesale car auctions.

Certificate of title

When you purchase your vehicle, you’ll receive a certificate of title from the Department of Motor Vehicles. This proves your ownership of a vehicle, which is essential for legal purposes.

Closing costs

Closing costs aren’t just for houses. When you finance a vehicle, closing costs of your loan include state sales tax, DMV fees, and any other potential fees or charges.


If you have less-than-ideal credit, you may need a cosigner, which is a person with a good credit history who assumes shared responsibility. Likely a trusted family member or friend, your cosigner will be responsible for payments if you are unable to meet your obligations.


The principal of your auto loan is the amount borrowed, plain and simple. This doesn’t include monthly interest accrued.

You have questions, and we have answers. Joseph Volkswagen of Cincinnati wants you to have a most pleasant door-to-door experience of any dealer in the Queen City, so we’re always happy to help you in any way we can.