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Major Purchases
| Term | Definition |
|---|---|
| Acquisition Fee | A fee charged by a lessor to cover the expenses incurred in arranging a lease. |
| Closed End Lease | A rental agreement that puts no obligation on the lessee |
| 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 |
| Default | failure to fulfill an obligation, especially to repay a loan or appear in a court of law. |
| Deficiency | a lack or shortage |
| Depreciation Fee | a method of allocating the cost of a tangible asset over its useful life. |
| Early Termination | a charge levied when a party wants to break the term of an agreement or long-term contract. |
| Finance Charge | any fee representing the cost of credit, or the cost of borrowing. |
| Fixed Rate Loan | a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. |
| Inception Fees | a fee that is charged by the bank that you are leasing through. |
| Installment Loan | a loan that is repaid over time with a set number of scheduled payments |
| Invoice Price | the automobile manufacturer's original charge to the dealer. |
| Lease | a contract by which one party conveys land, property, services, etc |
| Lessee | a person who holds the lease of a property; a tenant. |
| Lessor | a 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 | Rental car charge for driven distance that exceeds maximum allowed mileage |
| Money Factor | the alternative method of presenting the amount of interest charged on a lease with monthly payments |
| MSRP | the amount of money for which the company that produces a product recommends that it be sold in stores |
| Open End Lease | A rental agreement that obliges the lessee |
| Purchase Option | The right, but not the obligation, to buy a leased item at a predetermined price |
| Rebates | a partial refund to someone who has paid too much money for tax, rent, or a utility. |
| Residual Value | the amount you can buy the car for at the end of the lease, if you decide you want to purchase the car |
| Secured Loan | a loan in which the borrower pledges some asset |
| Trade-In Value | A statistical method used to estimate the sources of value added when producing goods and services for export and import. |
| Unsecured Loan | a loan that is issued and supported only by the borrower's creditworthiness, rather than by a type of collateral |
| Upside Down | A situation in which one owes more on a loan used to pay for an asset than that asset's current market value. |
| Variable Rate Loan | A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit |
| 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:
droehner19
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