Agreement of Sale : Otherwise known as a sales or purchase agreement, this agreement basically states that the seller is selling and the buyer is buying under a specified set of terms. Both parties would then sign the contract.
Annual Percentage Rate (APR) : Often confused with interest rate, an APR supplies the cost of credit over the course of a year. It is supplied as a percentage taking into consideration the amount finance, any charges, and the term of the loan.
Certificate of Title : Is evidence of vehicle ownership issued by the Department of Motor Vehicles when it has confirmed said ownership. There is a fee to receive one based on state, taxes and other possible registration fees.
Cosigner : Another person who signs your loan and assumes equal responsibility for it. This usually comes into play when the original person applying for the loan does not have enough credit to take on the responsibility themselves.
Credit : Reputation for solvency and integrity entitling a person to be trusted in buying goods or borrowing money.
Credit Bureau : An agency that keeps your credit record.
Credit Scoring System : A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness.
Creditor : A lender to whom money is owed.
Creditworthiness : Past and future ability to repay debts.
Default : Failure to repay a loan or otherwise meet the terms of your credit agreement.
Delinquency : Failure to make payments on time.
Disclosures : Information about a vehicles history that is given to the consumer, such as accidents or repairs that has been done to the car.
Down Payment : The amount of money that is initially deposited to lower the amount financed.
Equal Credit Opportunity Act (ECOA) : Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.
Finance Charge : The total dollar amount credit will cost.
Gross Monthly Income : The total amount the borrower earns per month, before any expenses are deducted.
Interest : A charge by the lender, expressed as a percentage of the total amount leant. The borrower pays this charge as payment for the loan.
Interest Rate : Expressed as a percentage of 100, the annual rate of interest on a loan.
Lessee : The person who signs a lead to have temporary use of a vehicle.
Lessor : The company that provides temporary use of a vehicle in return for periodic payment.
MSRP : Manufacturer's Suggested Retail Price. This is the recommended selling price for a vehicle, set by the manufacturer. Options added or removed from a vehicle effect this price.
Tax : Based upon the cost of the vehicle. Contributed to the government. Amount varies from state to state.
Term : For a loan this is the period of time between the beginning of the loan and the end date, at which time the balance of the loan would be due.
Title : A legal document that proves an individual’s ownership of property.
Verification of Employment : Written verification of your employment. Sent by your current employer, this may include your salary information, and your job description