Glossary of Auto Loan Terms
(T)
Tax
The tax is an amount above the price of the car and is based on the
location of the buyer. Typically, the tax is due at the time of
licensing.
Term
The length of time set for repayment of a specific debt.
Title
The title is a paper with information about your vehicle. The VIN,
owners’ names and addresses, make, model and color of the car are
among the details listed on the title.
Total Sales Price
The total sales price is that amount that is agreed upon by buyer
and seller, including add-ons and options.
Trade-In
When a person buys a new (or even a used) vehicle, he might use the
car he currently has as a trade in. When that happens, the owner
agrees to relinquish all claims to the car and the dealer agrees to
pay some particular price for the car being traded.
Trade-In Allowance
The amount allowed by the car dealer for the value of a trade-in car
is called the trade in allowance. In some cases, the allowance
simply stands as the down payment, meaning the buyer has no
out-of-pocket costs for the trade. Remember that the taxes, license
and insurance will still be required.
Trade-in value
The trade in value is the amount the dealer determines the car is
worth toward the purchase of another car. That amount may be more
than the appraised value because the dealer is simply pushes his
prices higher to accommodate that amount.
Truth-In-Lending Act
In 1968, the Truth In Lending Act was passed in an effort to protect
potential borrowers. Basically, the federal statute requires that a
lender disclose all aspects of the loan, including payment
requirements. |
