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major life purchases
| Term | Definition |
|---|---|
| acquisition fee | An acquisition fee is a charge from a lender or lessor to cover the expenses incurred for arranging a loan or lease agreement |
| closed end lease | A closed-end lease is a rental agreement that puts no obligation on the lessee to purchase the leased asset |
| collateral | something pledged as security for repayment of a loan, to be forfeited in the event of a default. |
| dealer incentives | A dealer incentive is a financial strategy used by manufacturers to motivate dealers to sell their products by offering discounts on those products. |
| default | fail to fulfill an obligation, especially to repay a loan or to appear in a court of law |
| deficiency | a lack or shortage. |
| depreciation fee | an amount in accounting that is commonly a fixed percentage of the original cost of a property and that is periodically charged off to expense or against revenue in order to compensate for the depreciation of the property. |
| early termination | An early termination agreement is an agreement between two parties ending a current contract earlier than the specified term. |
| finance charge | A finance charge is a fee charged for the use of credit or the extension of existing credit |
| fixed rate loan | A fixed interest rate is an unchanging rate charged on a liability, such as a loan or mortgage. |
| inception fees | 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 | A personal loan is money provided by a lender that can be repaid in monthly installments over a fixed period at a fixed interest rate |
| invoice price | The invoice cost of a product is the price that the merchant pays for the product before marking it up to sell. |
| 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 | a person who leases or lets a property to another; a landlord |
| mileage allowance | 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, or moving purposes. |
| mileage charge | Mileage reimbursement is employer-set compensation for work-related use of your personal vehicle. |
| money factor | The amount of interest to be paid by the lessee monthly |
| MSRP | The manufacturer's suggested retail price (MSRP) is the price that a product's manufacturer recommends it be sold for at the point of sale. |
| open end lease | In a closed-end lease, at lease-end you are responsible for the condition of the vehicle (that is, any excessive wear and use). In an open-end lease, you are responsible for the vehicle's value |
| purchase option | A purchase option assures the option holder of the right to purchase property at a certain price within a certain time period but without an obligation to do so. |
| rebates | a partial refund to someone who has paid too much money for tax, rent, or a utility. |
| residual value | The 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 | Secured loans are loans that are secured by a specific form of collateral, including physical assets such as property and vehicles or liquid assets such as cash ... |
| trade-in value | The trade-in value is the amount that a car dealer pays you toward the purchase price of a new or used car in exchange for your old car. |
| unsecured loan | Unsecured loans are loans that don't require collateral. |
| upside down | owing more one your car then it is actually worth |
| variable rate loan | A variable interest rate is a rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index. |
| 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:
abass23
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