Car Loan Glossary

Below is s list of some terms related to auto loans and the financing procedure. If you have any questions regarding our funding process, contact us. We recommend that you read the auto purchasing tips page as well as the FAQ page to better educate and familiarize yourself about auto financing and how our car buying services works.

Amortization

The reduction and retirement of a debt through periodic payments of interest and principal.

Accrued Interest

Interest which accumulates on the unpaid balance of loan principal.

Assignment

The transfer of your loan from one lender to another. Or from the automobile dealership to the lender.

Buyers Order

This form is the legal contract between the Buyer and the Seller.

Co-Buyer

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.

Co-Signer

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.