Trade-in Value
Dollar value of the vehicle allowed by your dealer when you are trading in
on a new purchase. This amount should be applied to the total down payment
amount to reduce the principal amount of your loan

Collateral or Security
Items you own or are purchasing (such as a motor-cycle, car, or home)
that a lender may ask to use to secure your loan.

Co-Applicant or Co-Buyer
A person-usually a spouse or other family member-who agrees to purchase a auto
with you in order to combine credit histories and income to help you get a loan.

Co-Signer
A person with good credit history and adequate income who agrees to make
your loan payments if you don't make them.

Credit History
Your history of borrowing money and paying it back as agreed, including
credit cards, rent or mortgage payments, and utility bills.
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Deposit
This payment, usually small, is made to your dealer to hold your Car
while financing is arranged.

Down Payment
The amount of money you pay in cash toward the purchase of your Car (usually 10 to 20 percent). A down payment may not always be required.

Finance Charge
The dollar amount you will pay to borrow money to buy your Car.

Fixed-Rate Loan
A loan arrangement where the interest rate stays the same for the length
of the loan. Most Auto loans are fixed-rate loans.

Interest Rate
The charge for borrowing money, usually expressed as a percentage,
and based on the loan amount and terms.

Monthly Payments
The amount paid every month to your lender, including both principal and interest.

Principal
The portion of your loan that represents your Car's cost
(including accessories, parts and other fees) less the down payment or trade-in amount.