Glossary of Auto Loan Terms
(R)
Rate
The interest rate is the amount added annually on a loan. In other
words, the rate is that amount charged by a lender for borrowing the
money for a purchase. With poor credit, that rate is likely to be
higher and a person who has made regular, timely payments for some
period of time may find they now qualify for a better interest rate.
Rebate
A rebate is some amount of money offer either by the dealer or the
manufacturer in order to encourage customers to buy a vehicle.
Sometimes, the rebate can stand for the down payment or may be
handed to the customer in cash for paying taxes, insurance and
licensing fees.
Reconditioning reserve
Similar to a deposit, a reconditioning reserve is some amount of
money paid by the person who takes possession of a car on a lease
agreement. The money is used to fix anything that is broken upon the
return of the car.
Refinancing
Refinancing means that you, as the buyer, have paid made payments on
a loan and now want to renegotiate the terms of that loan. The most
common reasons for refinancing are to negotiate a better interest
rate or to stretch the payments out over a longer period of time,
thereby making the monthly payment amount smaller.
Regulation Z
The rules that govern the Truth-In-Lending Act are known as
Regulation Z.
Residual Value
The residual value of a vehicle is determined by taking the initial
purchase price and factoring in the age and current mileage of the
car.
Retail Blue Book Value
Kelly’s Blue Book offers appraisal values for cars. To learn the
value, answer a few questions including whether the sale in question
is to be a retail transaction or a wholesale deal.
Retail Price
The retail price is that amount a buyer will pay for a car. |
