Glossary of Terms

We know some auto loan terms can be confusing, so we've put together a useful glossary to better help you understand the industry language.

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Proof Of Residence

Also known as POR, this includes utility bills, driver’s license, lease agreement or any other documentation that displays proof of a borrower’s residence.

Refinancing

Financing an existing car loan with a new lender. This process is usually used when a borrower wants to lower their monthly payment, interest rate or change their auto loan term. Note: We are unable to refinance existing loans that are serviced by Santander Consumer USA, its companies or brands.

Repossession

Repossession occurs when a customer defaults on an auto loan. Auto finance companies reclaim the vehicle when a customer fails to meet their financial obligation.

Service Charge

Charges that may include both costs incurred by the dealership to deliver the vehicle and the finance company to fund the loan.

Servicing

The services and operations performed by a lender to the borrower during the life of a loan, such as collections, statements and payment receipts.