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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.
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