Glossary

We don’t want any customer confused by the ever-changing terms in the automobile financing industry. We explain these to terms to you, our borrowers, so you can make the informed decisions.

If you have any other questions, please contact us.

APR or Annual Percentage Rate:          
APR is the figure used to compute the dollar amount of the interest charged on a loan. APR includes not only the interest payable over the term but also other fees and charges that a lender adds to the loan.

Balloon Payment:
A Balloon payment, is a payment due at the end of the loan term that is larger than the regular monthly payments. The idea behind having a balloon payment is to save on the interest charges.

Base Price:
The cost of the car with only the basic options. This number does not include any taxes or fees associated with completing your purchase.

Cosigner:
A Cosigner is a person that will assume responsibility for the payment of auto loan if the borrower fails to repay it.

Down Payment:
The payment the borrower makes upfront at the time of financing an auto loan. The amount of down payment will depend on the borrower’s credit history and the amount of loan being requested from the lender.

Stipulations
Stipulations are pieces of information that our lenders will require in order to complete your vehicle purchase and auto loan process.