Auto Loans

Front

The maximum amount of time over which an individual agrees to repay an auto loan. Typically ranges from 36 to 84 months.

Back

Loan terms

Front

The original amount of money that is borrowed. The amount decreases when you make a payment.

Back

Loan amount or principal

Front

The expected decline in value over time of an item.

Back

Depreciation

Front

A fixed amount of money, percentage of the selling price or item of value that is traded in to reduce the cost of purchasing a vehicle.

Back

Down payment

Front

A formal and extensive record of how good an individual is at maintaining their credit and paying their current and past debts in a timely manner.

Back

Credit history

Front

Made by a bank or other lender to an individual so that person can purchase a new or used vehicle, using the vehicle as collateral for the loan.

Back

Auto loan

Front

The fee charged for the use of money.

Back

Annual percentage rate (APR)

Front

A bank, savings and loan, credit union or dealership that makes loans to individuals or businesses.

Back

Lender

Front

A number assigned to a person that indicates to lenders their capacity to repay a loan.

Back

Credit score

Front

The larger your down payment amount, the (larger/smaller) the loan amount, and (larger/smaller) your monthly car payments.

Back

Smaller/larger