Finance Contract
The finance contract is the legal written agreement between
the borrower and the lender that includes all conditions of the loan.
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Fixed Rate Loan
A fixed rate loan is where the interest rate
on the loan never changed throughout the duration of the loan.
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Franchised Dealer
A franchised dealer is a dealership that the
manufacturer has authorized to sell their vehicles and
normally the franchise name will include the name of the
manufacturer.
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Gas Guzzler Tax
The gas guzzler tax is a tax collected by the
IRS on the sale of new model year automobiles whose gas
mileage does not meet a certain standard. This tax only applies to cars.
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General Warranty Deed
A general warranty deed is a deed in which shows all of the
seller’s interest along with the title to the buyer but also states
that if there is a lien on the title then the buyer can hold the
seller responsible.
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Grace Period
A grace period is a time frame that a payment can
be received in after the payment is actually due and there not be
a late fee.
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Grantee
A grantee is the person in the contract who is purchasing
the vehicle.
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Grantor
A grantor is the person in the contract who is selling the vehicle.
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Gross Monthly Income
Gross Monthly Income is the full amount
that the borrower makes in one months time
before anything is deducted from his
income such as taxes.
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Guarantee
Guarantee is a promise by one party to pay a debt or
perform an obligation contracted by another if the original
party fails to pay or perform according to a contract.
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Guaranteed Automobile Protection (GAP)
Guaranteed automobile protection or GAP coverage can be
purchased by the consumer to cover the remaining amount on the
loan in the event that there is a total loss of the vehicle.
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Guarantor
A guarantor is a person that has accepted the responsibility
of paying someone else’s debt.
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Hazard Insurance
Hazard insurance is a type of insurance that
will cover the insured person’s property against
different types of natural disaster
such as fire or storms.
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Impound
Impound is the amount that the lender holds back from
a borrower’s monthly payment for taxes, hazard insurance,
etc. This is also called
reserves.
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