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Default
Default is when the borrower does not make the agreed
payments on the loan or does not meet the conditions
agreed upon in the contract.
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Deferment
Deferment is getting permission from the lender to
skip a payment which is then added on to the end of
the loan causing the duration of the loan to be extended.
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Deferred Interest
Deferred interest is when the monthly payment
does not cover the interest owed and the unpaid interest is added to the unpaid
balance of the loan. In some cases a borrower could owe more than the original amount
borrowed. This is also called negative amortization.
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Deficiency Balance
A deficiency balance is the amount that a
borrower owes after the lender has repossessed their vehicle, sold it, and taken
the amount that they received for it off of the loan.
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Delinquency
Delinquency is when the borrower does not make payments
on the loan by the dates agreed upon in the contract.
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Depreciation
Depreciation is an automobile gradually loses its value.
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Destination Charge
A destination charge is the amount that the
dealership was charged from the manufacturer to have automobile sent to them. This
amount is included in the cost of the vehicle.
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Disability
Disability insurance pays a person’s debt if that
person has been injured or is ill and cannot work.
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Disclosures
Disclosures are pieces of information that are given
to the consumer about a vehicle’s previous history like accidents or repairs.
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Disclosure Statement
A disclosure statement is listed on the
loan document showing the full amount financed and any additional charges or fees.
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Discount Points
Discount points are purchased to lower the interest
rate on the loan. Each point counts as one percent of the loan.
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DMV
DMV stands for the Department of Motor Vehicles.
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Down payment
The down payment is the amount of money paid at the time of purchase.
The amount paid along with the loan amount equal the purchase
price of the vehicle. Most of the time Conventional loans have a down
payment of 10 to 20 percent of the sales price. FHA and VA loans normally
either do not require a down payment or it is up to 5 percent of the
purchase price.
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Due Date
The due date is the date that the borrower agrees to
pay the lender by each month.
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