APR
The "Annual Percentage Rate" is a yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR, and the rate is used to compare various loans available, making even simple interest and compound interest loans comparable.

Absolute Low (floor price)
The lowest price a seller is willing to take for a vehicle

Acceleration Clause
This allows a lender to speed up a loan rate if there is a default on the loan.

Accessories
The added features that are available for a new car.

Accrued Interest
Interest that increases on an unpaid balance of a loan.

Acquisition Fee
A fee included in most lease transactions that is either paid for up-front or included in the total cost of the vehicle. This fee covers a number of administrative costs, such as obtaining a credit report, verifying insurance coverage, etc.

Adjusted Capitalized Cost (Adjusted Cap Cost)
The price of the vehicle after deducting any dealer participation, manufacturer discounts, and down payment from the MSRP. This amount is also referred to as the net cap cost.  This amount is also referred to as the net cap cost

Advertising Fee
The car dealer will pass this fee on to the buyer for advertising costs.

Agreement of Sale
Also referred to as sales or purchase agreement. It states that the seller is selling and the buyer is buying.

Amortization
Payment of a loan obligation in a series of installments or transfers.

Application
An initial statement of personal and financial information required to approve your loan.

Appraisal
An opinion of the market value of an asset as of a specific date.

Appraisal Fee
The fee to estimate the value of any property or possession.

Asset
Tangible items (possessions or property) to secure a debt.

Assignment
Any transfer of your loan from one lender to another lender.

Auction
The sale process by which multiple bidders compete to purchase a vehicle that is finally sold to the individual offering the highest price.

Balloon Note
At the end of the loan term, some of or the entire original loan amount is due and payable.

Bankruptcy
A debtor that, upon voluntary petition or one invoked by the debtor's creditors is judged legally insolvent. The debtor's remaining property is then administered for the creditors or is distributed among them.

Base Price
The cost of a car without options, but including standard equipment, factory warranty, and freight. This price is printed on the Monroney sticker.

Bid
The amount of money offered for a vehicle in the sale.

Billing Error
The Federal Fair Credit Billing Act defines this as any mistake on your statement.

Bill of Sale
A document provided by a seller showing the name of the purchaser and purchase price, which is also used to calculate sales and other taxes.

Black Book
A biweekly guidebook on used car prices that summarizes the most recent wholesale prices directly from auctions. Values often are “extra clean, clean, average or rough”; adjustments can be made for mileage, trim level, and optional equipment.

Borrowing
To obtain or receive something on loan with the promise or understanding of returning it or its equivalent.

Broker
Someone who helps negotiate or arranges a loan but does not make the loan.

Business Days
Holidays and weekends are not usually considered a business day.

Buyers Guide
The Federal Trade Commission requires auto dealers to show a Buyers Guide for each used cars they sell.

Buyers Order
The contract between a buyer and seller.

Buy-Here, Pay-Here (BHPH)
Dealer-provided financing to customers who are unable to obtain credit. BHPH dealers sell mechanically sound, affordable vehicles for which customers generally return to the dealership weekly or monthly to pay off the dealer-provided credit for their car.