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Auto loan glossary
Was it the gleam of the chrome on that shiny new car that dazzled you? Or the bright cheery smile and baffling terms tossed around by the car salesperson? Before you sign a loan or lease contract for a car, know what you're getting into with our glossary of terms about auto loans and leasing. Bookmark this glossary so you'll always have a quick reference at hand. |
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- Margin
The amount that lenders charge above an index, usually expressed as percentage points.
- Market value
The market at which a piece of property would sell between a reasonably informed buyer and a reasonably informed seller. In real estate markets, comparable recent sales help the buyer and seller decide the fair market value.
- Maturity
The date a loan's principal amount is due in full.
- Mediation
The process of dispute resolution involving a neutral third party (mediator).
- Merged credit report
A summarized version of a person's credit history combining information from all the credit reporting agencies.
- Mileage allowance or mileage limitation
In auto leases, the number of miles you can drive without penalty.
- Mileage charge
The sum charged by auto leasing companies when a customer exceeds the mileage allowance.
- Money factor
In auto leasing, money factor is the interest charge. For no particular reason except to confuse consumers, it's expressed in auto leases as a tiny fraction rather than the familiar percentage. To convert it to a true interest rate, multiply it by 24.
- Monroney sticker
The sticker on window of a new vehicle showing its base price, installed options, transportation charges mileage and the manufacturer's suggested retail price (MSRP). Only the purchaser may remove the sticker, which was named after its sponsor in Congress, Almer Stillwell Mike Monroney (1902-1980) of Oklahoma.
- Monthly periodic rate
A number used in calculating your monthly loan payment. Usually it's the yearly interest rate divided by 12.
- Mop and glow
A mocking term used by those in the car industry to describe the items of minuscule value that they charge a great deal for, such as paint sealant.
- MSRP
Manufacturer's Suggested Retail Price. On vehicles, it must by law be posted on the car's Monroney sticker.
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auto loan rates |
| 11/21/2009 6:35:04 AM
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