Financial Glossary

A secured loan used to purchase a vehicle, with the vehicle as collateral.

The annual percentage rate representing the total cost of borrowing for a car loan.

The length of time to repay an auto loan, typically 36 to 84 months.

The upfront cash payment when buying a car, reducing the amount financed.

The ratio of loan amount to the vehicle's purchase price or value.

Gradual repayment of a car loan through fixed monthly payments over time.

Insurance covering the difference between a car's value and the loan balance if totaled.

A fee charged if you pay off a car loan before the end of its term.

The amount a dealer credits you for your current vehicle when purchasing a new one.

A loan where you owe more than the asset is currently worth.