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major purchases
| Term | Definition |
|---|---|
| Acquisition Fee | charged by a lessor to cover the expenses incurred in arranging a lease |
| Close End Lease | is a rental agreement that puts no obligation on the lessee (the person making periodic lease payments) to purchase the leased asset at the end of the agreement. |
| Collateral | something pledged as security for repayment of a loan, to be forfeited in the event of a default. |
| Dealer Incentives | A corporate sales strategy in which the price a dealer has to pay a manufacturer for a particular product is reduced, allowing the dealer to make a higher profit or to reduce the price at which the product is sold to consumers. |
| Default | failure to fulfill an obligation, especially to repay a loan or appear in a court of law. |
| Deficiency | a failing or shortcoming |
| Depreciation Fee | is the value of a fixed asset net of all accumulated depreciation that has been recorded against it. |
| Early Termination | is a charge levied when a party wants to break the term of an agreement or long-term contract. |
| Finance Charge | is any fee representing the cost of credit, or the cost of borrowing. |
| Fixed Rate Loan | where the interest rate doesn't fluctuate during the fixed rate period of the loan |
| Inception Fees | may include a down payment, security deposit, acquisition fee, first month's payment, taxes or title fees. |
| Installment Loan | is a loan that is repaid over time with a set number of scheduled payments |
| Invoice Price | is the automobile manufacturer's original charge to the dealer. |
| Lease | a contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for a periodic payment. |
| Lessee | a person who holds the lease of a property; a tenant |
| Lessor | person who leases or lets a property to another; a landlord. |
| Mileage Allowance | A deduction of automobile expenses for people using their vehicles for business, charity, moving, medical or any other purpose that qualifies for a deduction. |
| Mileage Charge | Funds provided to an individual as reimbursement for mileage placed on their vehicle from performing a duty for another person or business |
| Money Factor | is the alternative method of presenting the amount of interest charged on a lease with monthly payments. |
| MSRP | The list price, also known as the manufacturer's suggested retail price |
| Open End Lease | is a type of rental agreement that obliges the lessee (the person making periodic lease payments) to make a balloon payment at the end of the lease agreement amounting to the difference between the residual and fair market value of the asset. |
| Purchase Option | is a clause in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease period at a price substantially below its fair market value. |
| Rebates | a partial refund to someone who has paid too much money for tax, rent, or a utility. |
| Residual Value | is an estimate of how much it will be worth at the end of its lease, or at the end of its useful life |
| Secured loan | is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. |
| Trade in Value | of a car is the amount of credit that a car dealer is willing to offer you toward the purchase price of a new or used car in exchange for ownership of your old car. |
| Unsecured Loan | is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. |
| Upside Down | They owe more than the car is worth as soon as they sign the contract. |
| Variable Rate Loan | is an interest rate on a loan or security that fluctuates over time, because it is based on an underlying benchmark interest rate or index that changes periodically. |
| Warranty | a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time. |
Created by:
jscheffer18
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