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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Down Payment

Money required to lower the amount financed on an auto loan.

Electronic Fund Transfer (EFT) Systems

An electronic method of transferring funds from one bank account to another.

Equal Credit Opportunity Act (ECOA)

A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.

Equity

Based on funds you have paid on a loan, if your vehicle is valued at more than what you owe, you will have positive equity in your car.

F&I Office

Also known as finance and insurance, the F&I office is where auto loan customers fill out their contract and paperwork at a dealership before taking delivery on a new or used vehicle.

Finance Charge

The total amount of interest charges you will incur over the life of an auto loan.