Auto Loans Instantly Glossary
As you search for auto loans instantly, you might run across a few financing terms that you don't know. Consult our car financing glossary for definitions of the most important words and terms.
- APR - annual percentage rate. The interest rate on auto loans instantly expressed over the course of a year. By law, all lenders must calculate and disclose APR in the same way.
- Balance - the amount that remains to be paid on your auto loan.
- Credit - with regard to the financial world, credit describes one's ability to borrow funds. A borrower with good credit poses little risk to a lender and is more likely to qualify for affordable auto loans instantly. On the other hand, a borrower with bad credit is a poor risk and might have a hard time finding loans.
- Down payment - with dealership financing, the portion of the vehicle the borrowers pays for in cash. With third-party financing, the borrower doesn't actually make a down payment, but rather subtracts the down payment from the amount he/she borrows.
- Finance - paying for a car over time as you drive it. The only alternative to financing is to pay for the car in cash up front.
- Finance and insurance office - if you get auto loans instantly at a dealership, the salesperson will handle the negotiations. Once an agreement is reached, the salesperson sends the borrower to the finance and insurance office to sign the contracts.
- Four-square form - a worksheet that dealerships use to keep track of the four components of a car deal when negotiating. The four aspects of the deal are trade-in, vehicle price, monthly payment, and down payment.
- Interest rate - the fee borrowers pay to the lender for the service of auto loans instantly.
- Lease - a form of auto financing where the borrower pays a monthly fee to use the vehicle but does not own it.
- Lending institution - any organization that lends funds. Lending institutions can include banks, credit unions, and car manufacturers.
- Sales tax - a percentage of the car's purchase price that the borrower must pay to the state.
- Term - the length of auto loans instantly. Common terms include 36, 48, and 60 months.
- Title - a document that specifies information about a car and the person or entity who owns it. When you finance a vehicle with auto loans instantly, your lender will retain the title until you have repaid the loan.
If you have any inquiries, please examine our Frequently Asked Questions page.
