Page - prev 1
2 3 4
5 6
7 8
9 10
11 12
13 14
15 16
next
Ancillary Charges
Ancillary charges are charges that can be added to the amount of the loan if the buyer chooses to purchase the service or coverage
offered by the dealer at the time of the purchase.
|
Annual Percentage Rate (APR)
The annual percentage rate or “APR”
is the amount of money that is spent on credit over a years time. The duration of
the loan, the finance charges, and amount financed are all used to factoring the
percentage. This is different that the interest rate because it includes all of
the expenses in obtaining the loan. The lender is required by law to disclose the
annual percentage rate to the consumer.
|
Application
An application is the form that the borrower fills
out with their information so that they can apply for a loan.
|
Appraisal
An appraisal is the amount that a property is deemed
to be worth by an authorized individual known as an appraiser.
|
Appraisal Fee
An appraisal fee is the amount charged by an appraiser
to determine the worth of a certain property or item.
|
Appreciation
Appreciation is when a person’s assets grow in value.
|
Asset
An asset is something that a person owns that has monetary
value. An example of an asset could be a house, stock, bond, or car.
|
Assignment
Assignment is when a loan is transferred from lender
to lender or from dealership to lender.
|
Assumption
Assumption is when there is already a loan taken out
for vehicle and the buyer agrees with the seller that they will take over the payments.
|
Automated Teller Machines (ATMs)
Automated teller machines are
computers that a person can get information about their bank account or credit card
account from. A person can also make monetary withdrawals or deposits with this
machine.
|
Balance
The balance is the amount of the loan that has not been paid back or is still owed.
|
Balloon Payment
A balloon payment is when the last payment on
the loan is large so that the regular monthly payments can be smaller.
|
Base Monthly Payment
The base monthly payment is the portion
of the payment that includes only the depreciation of the vehicle for the duration
of the lease. This is figured by taking the amount financed minus the residual divided
by the number of months in the lease. When you add tax and the monthly interest
to this number you will have your total monthly payment.
|
Page - prev 1
2 3 4
5 6
7 8
9 10
11 12
13 14
15 16
next