General
Financial Glossary - Auto Loan Terms A to D
Amortization
- Repayment of a loan by intstallment payments
Amortization
Schedule - Timetable for payment of a loan showing
what amount of each payment is applied to principal and
interest for the remaining balance of the loan.
Annual
Percentage Rate (APR) - Total yearly cost of a
mortgage stated as a percentage of the loan amount which
includes the base interest rate, loan origination fee (points),
and primary mortgage insurance (PMI).
Appraisal
- An estimated value of an automobile based on general value
which is inflenced by market, region, condition of vehicle,
mileage and mechanical condition.
Appraisal
Fee - A fee associated with having a vehicle appraised.
Appreciation
- Increase of value due to market changes or conditions.
Bank
- A lending institution that provides loans and various
financial services.
Bank
Financing - When a bank is the lender of money
for an auto loan.
Collateral
- Property which is offered to the lender showing good faith
in promise to repay a loan. If the loan goes into default
the lender has the right to take the offered collateral.
Commission
- The money either a set amount or percentage of a sale
which is earned by a salesperson.
Co-Signer
- A second party that co-signs on your loan to ensure a
lender that if you are not making the promised payments
they will be responsible for the scheduled payments.
Contract
of Purchase - Know by several names such as sale
agreement, purchase agreement and purchase contratct. This
contract is between the lender and the buyer which specifies
the terms of the loan and responsiblities for both parties.
Credit
- A loan granted by the lender with a promise from you to
repay the lender in the future in order to buy an automobile.
Credit
Bureau - An agency that keeps a file of an individual
credit history.
Credit
History - The history which shows how you have
repaid previous obligations to creditors.
Credit
Scoring - Statistics that are used by creditors
to determine the credit worthiness of an individual.
Credit
Worthiness - Shows past and previous ability to
repay loans and obligations to other creditors.
Default
- Failure to pay loan payments on time or not meeting the
terms of the original loan agreement.
Delinquent
- Failure to make payments on time. This can lead to the
lender repossessing the property being financed and demand
payment in full.
Disclosures
- Information that must be given to a consumer by a lender
concerning the terms of the loan.
Down
Payment - Money that is paid by the consumer upfront
to show some commitment to the lender. Usually is the difference
between the amount a lender is willing to loan you and the
sales price of the automobile.
Due
in Full Clause - This provision allows the lender
to demand payment in full at the time when you sell and
automobile which is being financed.
General
Financial Glossary - Auto Loan Terms A to D
Auto Finance Terms E -
H
Auto Finance Terms I -
L
Auto Finance Terms M -
P
Auto Finance Terms Q -
T
Auto Finance Terms U -
Z
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