pe-file Car Loans

Glossary of Auto Loan Terms (D)

Dealer Charges
Dealer charges are those fees above the manufacturer’s price to the dealer. Those charges will typically reflect the cost of shipping.

Dealer holdback
The dealer holdback is an amount that could be used to provide additional purchase incentives. Dealers pay for the car when it’s sold, not when it’s delivered to the lot. The holdback is often returned by the manufacturer if the car sells within a specific time frame. If not, the dealer has typically dipped into his own money to pay interest rates in order to retain the car.

Dealer incentives
Dealer incentives are offered by manufacturers to dealers in an effort to promote specific cars. These incentives are not necessarily money with some manufacturers offering trips or other tangible prizes.

Dealer Invoice
The dealer invoice is the amount the dealer pays for a car

Dealer Sticker Price
The dealer sticker price is the amount the dealer paid for the car, plus the dealer profits and any dealer add-ons. Buyers should note that this is also an “asking price,” and a lower price can usually be negotiated.

Debt

Debit is the amount of money owed. Typically, all debts are compiled for consideration on loans.

Default
Buyers are required to make specific payment amounts by a particular date. A failure to do so could result in a default. When a buyer defaults on a loan, he has typically agreed that ht has no intention of making the payments. Generally, the lender will repossess the collateral at that point.

Delinquent
A loan becomes delinquent when the payments have not been made as promised.

Department of Motor Vehicles (DMV)
The DMV is a governmental office with specific duties regarding the oversight of vehicles. Typically, the Department of Motor Vehicles is where to do to purchase or renew tags.

Department of Transportation
The Department of Transportation - known as DOT - is a federal

Depreciation
Depreciation refers to the value of the car at a specific time as compared to the cost of the car new.

Destination Charge
A fee charged by manufacturers and typically passed on to consumers to pay for transportation of the vehicle.

Direct Financing
Direct financing refers to the situation in which a potential buyer goes directly to a lender and request a loan.

Disclosures
Information told to the buyer by the dealer are called disclosures. A failure to fully disclose information - such as the fact that the car has been involved in a serious accident - is a violation of the Truth-in-Lending Act.

Down Payment
The down payment is the amount paid at the time of purchase. A person with poor credit may be asked for a larger down payment. Another car free of liens may also be used as a down payment.

Due Date
The date payments are to be received by the lender. Paying after the due date will typically result in additional fees. A seriously late payment will usually be submitted to the three credit reporting companies and can impact future ability to make purchases.

Duplicate Title
A title that is provided by the state DMV to replace a lost or damaged title.