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

Income
All money a person earns or receives during a period of time, such as employment from one's job (wages, salary, commissions, bonuses, tips) or unemployment compensation, child support, alimony, earnings on investments, financial aid, self employment, social security, welfare, disability pensions, interest, dividends, rental income, and other property income, veterans' benefits, etc.

Interest Rate
The percentage of a sum of money charged to the borrower (you) by the lender (a bank, or other financial institution) for borrowing the lender's money. Interest rates change because of the market conditions.

Invoice Price
Invoice Price or Factory Invoice Price is the manufacturers initial charge to the car dealer for a vehicle. This charge is usually higher than the dealer's final cost because dealers receive rebates, allowances, discounts, and incentive awards. The dealer will actually have a printed invoice that shows this price figure. It is the invoice price that you want to work from. You can get the invoice price by looking at the dealer's invoice or reviewing car publications. The invoice price always includes freight, also known as destination and delivery which is passed on to the buyer without any markup. If you're buying a car based on the invoice price and freight is already included, make sure freight isn't added again to the sales contract.

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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