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major life purchases
| Term | Definition |
|---|---|
| acquisition fee | sometimes hidden in the price, is charged by a lessor to cover the expenses |
| closed end lease | a contract -based system governed by law in the U.S. and Canada. It allows a person the use of property for a fixed term |
| collateral | pledged as security for repayment of a loan, to be forfeited in the event of a default |
| dealer incentives | financial inducement used by manufacturers to motivate dealers to sell a particular product by offering discounts on that product |
| 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 fee that is typically the main component in the monthly lease payment. |
| early termination | Executive’s Separation from Service before attainment of Normal Retirement Age except when such Separation from Service occurs within twenty-four (24) months following a Change in Control or due to death or Termination for Cause |
| finance charge | is a fee charged for the use of credit or the extension of existing credit. |
| fixed rate loan | A loan with an interest rate that does not change over the life of the loan. |
| inception fees | Any fees that are due at lease inception. Inception fees may include a down payment, security deposit, acquisition fee, first month’s payment, taxes or title fees. |
| installment loan | money you borrow and pay back with fixed payments or installments over a period of time, or term. It differs from a revolving line of credit, which you get with a credit card |
| invoice price | initial price that the manufacturer charges the dealer. |
| lease | 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 | a person who leases or lets a property to another; a landlord. |
| mileage allowance | is a term the Internal Revenue Service (IRS) uses to refer to the deductibility of expenses car owners accrue while operating a personal vehicle for business, medical, charity |
| mileage charge | car rental charge applied if allowed miles are exceeded in a rental agreement. Charge is typically by the mile. |
| money factor | amount of money paid by the customer is called the money factor and it should be low. |
| MSRP | manufacturer's suggested retail price. |
| open end lease | 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 |
| purchase option | as the opportunity to purchase a piece of property which is being leased after the lease is completed |
| rebates | partial refund to someone who has paid too much money for tax |
| residual value | also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life |
| secured loan | loan backed by collateral financial assets you own, like a home or a car that can be used as payment to the lender if you don't back the loan |
| trade in value | car dealership’s valuation of your car when you opt for a trade-in. |
| unsecured loan | a loan that doesn't require any type of collateral. Instead of relying on a borrower's assets as security |
| upside down | with the upper part where the lower part should be; in an inverted position. |
| variable rate loan | is a type of home loan in which the interest rate is not fixed. Instead, interest payments will be adjusted at a level above a specific benchmark or reference rate |
| warranty | written guarantee, issued to the purchaser of an article by its manufacturer |
Created by:
KFarrell2021
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