Car Loan Glossary
The reduction and retirement of a debt through periodic payments of interest and principal.
Interest which accumulates on the unpaid balance of loan principal.
The transfer of your loan from one lender to another. Or from the automobile dealership to the lender.
This form is the legal contract between the Buyer and the Seller.
Unlike a Co-Signer a Co-Buyer's income is combined with the Buyer's. This option is normally limited to a spouse or a person closely related residing at the same residence.
Someone who assumes legal responsibility for repayment of a loan in the event the borrower does not pay. A Cosigner may be considered for a Buyer who does not comply with all the credit requirements. The income of the Buyer, however, must meet all the income and budget guidelines without reliance upon the income of the cosigner.