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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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- Rate
How much a borrower pays for the use of money.
- Reaffirmation agreement
An agreement by someone in bankruptcy to continue paying a debt after the bankruptcy. Usually used to keep a car from being repossessed and sold.
- Rebate
A reduction on a price, used as an incentive.
- Recession
A prolonged period (popularly defined as two successive quarters) in which economic activity shrinks.
- Reconditioning reserve
Another name for the security deposit paid when leasing a vehicle.
- Redemption
Debtors may keep exempt secured property even though they owe money on it by paying the creditor the collateral value of the property rather than the amount of the debt. Note that in some cases the value of the collateral may be less than the amount owed.
- Regional bank
A bank with a primary market in a regional or metropolitan area but takes deposits from throughout the state in which it is located. It is typically more expansive than a community bank, but more restrictive than a national financial institution.
- Regulation Z
A rule, enforced by the Federal Reserve Board and implementing the Truth-in-Lending Act, that requires lenders to disclose all credit-related costs including the annual percentage rate.
- Remaining balance
Unpaid principal on a loan.
- Remaining term
The time it will take to pay off the rest of an installment loan as scheduled.
- Rental reimbursement
This part of a policy pays for the cost of a similar-sized rental car when your car is in a repair shop after a wreck.
- Reorganization plan
A Chapter 11 or 13 plan describing the terms by which the debtor intends to repay his debts, usually over a three- to five-year period.
- Repayment plan
An alteration of an existing loan created after a borrower fails to pay. Can be used by lenders as an alternative to repossession or foreclosure.
- Repossession
Taking back property. Used when a borrower fails to pay as agreed.
- Right of rescission
Under the Truth-in-Lending Act, borrowers may change their minds about car loans or certain home equity loans within three days.
- Rule of 78s
A mathematical formula to allow a quick way for lenders to estimate loan payoff amounts.
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| National
auto loan rates |
| 11/21/2009 6:31:36 AM
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