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.

B

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.

Budget
A budget is a detailed record of all income earned and spent during a specific period of time. Many people design and stick to a budget plan to get their debts under control. A budget is a plan for how much money you have and how much money you spend. Sticking to a realistic budget plan allows you to pay off your debts and save for the rainy days ahead.

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

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Consumer Info

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