Auto Credit Loan Glossary
A contract of purchase, purchase agreement, or sales agreement according
to location or jurisdiction. A written contract in which a seller
agrees to sell and a buyer agrees to buy, under specific terms.
Loan payment calculated to pay off a loan over a fixed period, including
interest on the outstanding balance.
Percentage Rate (APR)
The percentage results from an equation considering the total amount
financed, the finance charges, and the term of the loan. Usually
expressed as a yearly rate.
An estimate of the value of property.
Property that can be used to repay debt, including a home, car,
stocks and bonds.
Money paid to a car salesman for making a sale.
Another person who signs your loan and assumes equal responsibility
A decline in value usually due to wear and tear of the property.
Money that is paid to the dealership so that the amount financed
The total amount the borrower earns per month, before any expenses
A charge paid for borrowing money.
The annual rate of interest on the loan, expressed as a percentage
When a payment is not made by a set time, the lender may impose
Stands for Manufacturer's Suggested Retail Price. It represents
the manufacturer's recommended selling price for a vehicle and each
of its options.
The amount of debt, not counting interest, left on a loan.
The period of time between the beginning loan date on the legal
documents and the date the entire balance of the loan is due.
A document that gives evidence of an individual's ownership of property.