Auto Loan Learn the Terms

Car Talk
Below are some terms you may hear when shopping for a new or used vehicle or auto loan. Some words may have more than one meaning. Only those meanings relating to this site will be used.

Definitions A - Z

N/A
Not applicable (not applied). If you finance your vehicle with the car dealership, insert N/A or put a cross through any blanks not applied to you. If information is inserted by someone else after you have signed the contract, you may still be bound to the terms of the contract. Never sign a blank document or a document containing blanks.

Negotiate
To speak with another or others in order to come to terms or reach an agreement. When buying a vehicle, be patient, remember to shop around, to compare costs and terms and to negotiate for the best deal.

Negotiated Price of the Vehicle
The purchase price of the vehicle agreed upon by the buyer and the dealer.

Net Monthly Income
Net monthly income is your take home pay after taxes. It is the amount of money that you actually receive in your paycheck.

Net Worth
The value of your total assets (what you own) minus your total liabilities (what you owe).

Note
A legally binding contract you sign when you get a loan. This legal contract lists the conditions under which you are borrowing and the terms under which you agree to pay back the loan, for example, you borrow a specified sum of money at a specified interest rate to be paid over a fixed period of time. Also called a mortgage note or a promissory note.

SCAMS & FRAUD
Some Scams, Fraud, and Consumer Abuse Items in the News

Federal Laws
Major Laws That Govern Financial Institutions & Protect Individuals in Their Financial Dealings

Organizations

Fannie Mae
Freddie Mac
Ginnie Mae
Nellie Mae
Sallie Mae

Consumer Info

Consumer Tips
Credit Bureau
Credit Insurance
Credit Report
Directory of Federal Agencies
Federal Trade Commission (FTC)
Identity Theft
Predatory Lending
Repair Your Bad Credit
Truth in Lending Act
Borrowers Beware

Miscellaneous

Private Mortgage Insurance (PMI)
Prepayment Penalty

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