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

Back End Profit
Dealers will often take smaller profits when selling you a car, called front end profit, if they know that they are going to make a nice profit on the financing of the car, called back end profit. Car dealers make approximately half of their money through financing the autos they sell.

Bank Statement
Monthly bank report that summarizes financial transactions.

Base Price
The cost of the car without options, but includes standard equipment and factory warranty. This price is printed on the Manufacturer's Suggested Retail Price (MSRP) (monroney sticker).

Blue Book
Refers to the Kelley Blue Book a guide dealers use to estimate wholesale and retail vehicle pricing.

Bona Fide
Something that is in good faith, without fraud, the real thing.

Budgeting
In many cases people design and stick to a budget to get their debt under control. A budget is a plan for how much money you have and how much money you spend. Sticking to a realistic budget allows you to pay off your debts and save for the proverbial rainy day.

Buyer's Remorse
A feeling of regret, or anxiety, felt by a person, that buying the purchase of a house, or vehicle, or anything expensive, was the wrong thing to do.

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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