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

Title
A legal document containing specific information about the vehicle and stating who owns it. If you borrow money to get a car, the title will be held by the lender until the vehicle is paid off.

Trade In Value
The amount that the dealership will credit you for the vehicle you provide as partial or full payment for another vehicle. Amount credited is frequently about 5 percent below the wholesale value of the vehicle.

Transaction Fees and Other Charges
Most creditors charge a fee if you don't make a payment on time. Other common credit card fees include those for cash advances and going beyond your credit limit. Some credit cards charge a flat fee every month, whether you use your card or not.

Truth in Lending Act
Truth in Lending Act requires that, before you sign an agreement, creditors give you written disclosure of important terms and conditions associated with the credit agreement such as Annual Percentage Rate (APR), total finance charges, all fees, monthly payment amount, payment due dates, total amount being financed, length of the credit agreement and any charges for late payment. Read more about Truth in Lending Act

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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