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.