Flashcards › Hessing Auto Loan Terms

Auto Loan Borrowed money to purchase an automobile Negotiated Price Price being paid for the automobile agreed upon by buyer and seller Down Payment Amount of money paid on the automobile at time of purchase Trade-In Value Amount of money received for trading in the automobile, subracted from negotiated price Principal Loan Amount Amount of the loan for the automobile after subtracting the down payment and trade-in value from the negotiated price, before adding fees Annual Percentage Rate Measure of the cost of credit on a yearly basis expressed as a percentage Time Period Amount of time in which the loan will be repaid, usually expressed in months Total Cost of the Loan Total of the Principal amount and interest paid Total Purchasing Cost of an Automobile Total of the Down Payment, Trade-In and Total Cost of the Loan Lender Usually a large financial institution who offers loans to consumers. Cosigner A person who gurantees a loan for the origional borrower Credit Rating An evaluation of a person's credit history Terms used when discussing and calculating an auto loan.