Auto Loan Terminology

Across

2. The amount you borrow, excluding interest and fees.
4. are definitions for all 40 car loan terms provided earlier, useful for understanding auto loan agreements and financial documents:
5. Loan: Loans for borrowers with poor or limited credit, often with higher rates.
6. Term (length): The amount of time you have to repay the loan, usually in months.
9. Rate: The percentage charged by lenders as the cost of borrowing money.
11. Payment: Initial lump sum you pay toward the car’s price before financing the balance.
13. A company or institution that buys your loan or lease from the lender or dealer, becoming responsible for collection.
14. Cash Value (ACV): The fair market value of your car at a given point, often used by insurers if your car is totaled.
16. Amount: The total amount required to pay off your loan, including principal and any accrued interest or fees.
19. The difference between your car’s value and the remaining loan balance; positive equity means your car is worth more than what you owe.
21. Rate: The interest rate a dealer gets from a lender before adding any markup for the customer.
23. to Value Ratio (LTV): Ratio of your loan amount to your car’s value, used by lenders to assess risk.
26. Term: The number of months you have the use of a leased car.
27. Failure to repay your loan as agreed, which can lead to repossession or other consequences.
32. Insurance: Insurance that pays the difference between your car’s ACV and what you owe on the loan if it’s totaled.
33. Penalty: Fee charged for paying off a loan ahead of schedule.
34. Taking out a new loan to pay off and replace your current loan, usually for better rates or terms.
35. Statement: Document outlining loan terms, rates, and your payment obligations.
37. Loan: A loan backed by collateral (such as the car itself), which the lender can repossess if you default.
39. Suggested Retail Price (MSRP): The price recommended by the automaker for retail sale.

Down

1. Termination Fee: Charge for ending a lease or loan before its scheduled end date.
3. Insurance: Optional insurance that covers loan payments if you lose your job or become disabled.
5. Interest: Interest calculated only on the principal, not on accrued interest.
6. The bank, credit union, or finance company that provides the loan.
7. Percentage Rate (APR): The yearly cost of a loan as a percentage, including fees and interest, to help compare offers.
8. Equity: Occurs when you owe more on your car loan than your car is worth.
10. Value: Estimated value of a leased car at the end of the lease term.
12. Origination Fee: A one-time fee charged by the lender for processing and opening the loan.
15. A person who signs the loan with you, agreeing to take responsibility if you can’t pay.
17. Rate Loan: A loan with an interest rate that stays the same throughout its term.
18. Reduction in a car’s value over time due to age, wear, and market conditions.
20. Cost: The total amount you pay over the life of the loan, including interest, fees, and principal.
22. Loan: A loan not backed by collateral, typically at higher interest rate
24. A contract to use a car for a set time and mileage, with payments but without ownership at the end.
25. Incentives: Discounts or offers from manufacturers to dealers to promote certain models or speed up sales.
28. The process of spreading loan payments over time so each payment includes both interest and principal.
29. Value: Amount a dealer offers for your existing vehicle when you buy a new one.
30. Agreement: A contract detailing terms, payment schedule, rights, and obligations of both lender and borrower.
31. Auto Protection: Another term for gap insurance.
36. Payment: The amount you pay each month toward your loan or lease.
38. Price: The standard price of a car before any fees, options, or additions are included.