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Major purchases
| Question | Answer |
|---|---|
| Acquisition Fee | A fee charged to cover the expenses incurred in arranging a lease. |
| Closed end Lease | A rental agreement that puts no obligation on the person making the lease payment, to purchase the leased asset at the end of the agreement. |
| Collateral | Security for repayment of a loan. |
| Dealer Incentives | A 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. |
| Default | Failure to fulfill an obligation, especially to repay a loan or appear in a court of law. |
| Deficiency | A lack of shortage. |
| Depreciation Fee | Purchase price. |
| Early Termination | A fee that is levied when a party want 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 change during the fixed rate period of the loan |
| Inception fees | Down payment, security deposit, acquisition fee, first month payment, taxes or title fees. |
| Installment loan | A loan that is repaid over time with a set number of scheduled payments. |
| Invoice price | Automobile manufacturer's original charge to the dealer. |
| Lease | A contract which one party conveys land, property etc. to another for a specified time. |
| Lessee | Person who holds the lease of a property. |
| Lessor | Person who leases a property to another (a landlord). |
| Mileage allowance | Expenses for people using their vehicles for business, charity, moving etc. |
| Mileage charge | Rental car charge for driven distance that exceeds maximum allowed mileage. |
| Money factor | Alternative method of presenting the amount of interest charged on a lease with monthly payments. |
| MSPR | Term used to mean the price at which a manufacturer will recommend a retailer sell a product for. |
| Open end lease | A rental agreement that obliges the lessee to make a balloon payment at the end of the lease agreement. |
| Purchase Option | Option in a lease agreement that allows the lessee to buy the leased asset at the end of the lease period at a lower price. |
| Rebates | A partial refund to someone who has paid too much money for tax or rent. |
| Residual value | Estimate of much a fixed asset will be worth at the end of its lease. |
| Secured loan | A loan in which the borrower pledges some asset as a collateral for the loan. |
| Trade-In value | Amount of money offered to you by a dealer for your old car. |
| Unsecured loan | Loan that is issued and supported only nu the borrower's creditworthiness rather than by any type of collateral. |
| Upside down | A situation in which one owes more on a loan used to pay for an asset that that asset's current market value. |
| Variable rate loan | A loan over time, because it is based on an underlying index that changes periodically. |
| Warranty | A written guarantee issued to the purchaser of an article by its manufacturer. |
Created by:
jeik17
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