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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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- Office of Comptroller of the Currency
The federal agency that charters and regulates national banks.
- Office of Thrift Supervision
The federal agency that charters and regulates federal and state chartered thrifts.
- One-Year Treasury Constant Maturity
An index published by the Federal Reserve Board based on the average yield of a range of Treasury securities, all adjusted to the equivalent of a one-year maturity. Yields on Treasury securities at constant maturity are determined by the U.S. Treasury from.
- Online banking
Access by personal computer or terminal to bank information, accounts and certain transactions via the financial institution’s web site on the Internet. Also known as Internet banking.
- Open-end credit
A line of credit that may be used up to a set limit. Also called a charge account or revolving credit.
- Open-end lease
Also called a finance lease. Little used today, because consumers cannot be certain whether they will owe additional money at the end of the lease. In a closed-end lease, the leasing company sets the residual, or ending value, of the car upfront. But in an open-end lease, the residual value is the fair market value. If the car turns out to hold value well, the consumer has to fork over extra money to turn in the car.
- Option
A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.
- Options
Also known as add-ons. These are features added to the car often by the dealer such as a CD stereo, anti-theft system, detailing and undercoating. Some items are purely decorative, known as mop and glow, and do not add any value to the car.
- Oral agreement
A spoken or unwritten agreement. Though legal, difficult to enforce.
- Original principal balance
The amount you borrowed.
- Origination fee
What a lender charges to process a loan.
- OTS
The federal agency that charters and regulates federal and state chartered thrifts.
- Owner financing
Financing provided by the seller. Can be a portion or all of the sale price.
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| National
auto loan rates |
| 11/21/2009 6:51:45 AM
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