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Origination Fee
An origination fee is charged by lenders for
all of the work required in setting up the loan.
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Overdraft Checking
Overdraft checking is where a person can use
their EFT card to make purchases or withdraw funds for more than their actual balance
and they pay interest on the amount that is over and above their balance.
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Payment
A payment is the portion of the principal and interest
that the borrower pays each month to the lender.
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Payment to Income Ratio
Payment to income ratio is best when
under 15%. This is figured by comparing a person’s car payment to their income before
taxes.
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Pink Slip
A pink slip is the automobile’s title.
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Point-of-Sale (POS)
Point of sale is a way that a consumer can
make a payment and the money is taken from their bank account without having to
use a check.
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Points
Points represent interest. One point would represent one
percent.
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Power of Attorney
Power of attorney allows one person to make
legal decisions for another person.
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Preparation Charges
Preparation charges are fees that the dealer
charges the consumer for getting the purchased vehicle ready for pick up.
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Prepayment Penalty
A prepayment penalty is when the consumer
is monetarily penalized for paying off a loan before the agreed upon length of the
loan.
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Principal
The principal is the amount that is being financed before any interest is added.
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Principal Balance
Principal balance is the amount of the loan
that is still owed.
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Q-form
A q-form is a collection of questions on a form that the applicant will fill out in order to apply for a loan.
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Qualify
To qualify is when the borrower has been approved for
the loan.
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Quote
A quote is how much the vehicle with cost the buyer.
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Rate
Rate is a yearly percentage of the principal that is paid
as interest on the loan.
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Rebate
A rebate is where the manufacturer will send the buyer money back to help encourage the sales of a particular product. This is also known
as a customer incentive.
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Recision - Recision is when a contract is cancelled.
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