Amount financed
Amount financed refers to the amount of auto loan that a borrower has drawn for purchasing vehicles.

Amount owed on trade
Amount owed on trade is the term used for the balance of the auto finance that is still remaining to be paid to the lender.

Amortization
The process of repaying auto loan in installments is referred to as amortization.

Cosigner
A person who assumes the responsibility of paying any balance of the auto finance if the principal borrower fails to do so is referred to as cosigner.

Default
When borrower is not able to pay the auto finance in full, then he is said to have defaulted.

Down payment
Down payment is a certain percentage of the value of the vehicle paid by the borrower.

Fixed rate financing
Fixed rate financing is a method where borrower gets to pay rate of interest charged at a stable rate of interest.

Lien
Lien is the right of lender on an asset of borrower against which the auto loan has been taken. This right continues until borrower pays off the auto finance in full.

Monthly payments
Monthly payment refers to a method of amortization of auto finance wherein borrowers get to make payment through installments that occur every month.

Negative equity
Negative equity is a situation where the amount owed on a vehicle increases the amount that the vehicle is worth.

Variable rate financing
Variable rate financing is a situation where the interest rate on auto finance fluctuates along with the base rate in the financial market.