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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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- National Automobile Dealers Association
The trade organization that publishes the widely used NADA Official Used Car Guide of retail vehicle prices and trade-in values.
- National bank
When banks organize, they have a choice whether to go under state or national rules. A national bank is one that decides to organize itself under the national rules and become a member of the Federal Reserve System.
- National Credit Union Association
The government agency that charters and oversees federal credit unions.
- National Credit Union Share Insurance Fund
Similar to FDIC insurance, but for credit union deposits.
- National Foundation for Consumer Credit
A nonprofit organization, funded in part by the credit card industry, that offers credit counseling and debt management plans. Parent group for Consumer Credit Counseling Services.
- National Vehicle Leasing Association
A trade group for automotive leasing companies that can provide direction on understanding leasing contracts and terms.
- Negative amortization
With a normal amortized loan, you gradually pay down your principal (the amount you borrowed). A few loans let you pay a smaller amount, which does not cover the entire principal and interest. In those cases, the shortfall is added to the remaining balance, creating negative amortization. It's to be avoided, because you owe more than you did the month before.
- Negative-equity financing
When your trade-in isn't enough to pay off your old car loan, but you still insist on getting a new car and a new loan, lenders will be happy to create a new loan that includes the old loan's balance. It puts the borrower deeper in a debt hole.
- Net income
Income after taxes. A figure required by some lenders during the application process.
- Net worth
The total value of all assets, minus all debts.
- NFCC
A nonprofit organization, funded in part by the credit card industry, that offers credit counseling and debt management plans. Parent group for Consumer Credit Counseling Services.
- Niche banks
Banks that specialize in serving a particular group or industry.
- No fault insurance
In states with no-fault insurance, your policy will pay for your injuries regardless of who was at fault.
- Note
In lending, a note is legal acknowledgment of a debt.
- Notice of default
Any official notification that a borrower has failed to pay. In mortgages, it can describe a formal step in the foreclosure process in which the lender notifies the courts of a borrower's failure to pay.
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| 11/21/2009 6:38:02 AM
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