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.

No results found for . Please refine your search.

Grace Period

A period of time from a payment due date in which you can be late without being charged a penalty fee.

Gross Monthly Income

The total monthly income of a borrower before any deductions have been removed such as insurance, child support and income tax.

Interest

Also known as finance charges, this is the amount a lender charges to provide a car loan to a borrower.

Interest Rate

Expressed as a percentage of 100, the annual rate of interest on an auto loan.

Invoice Price

The amount a dealerships pays for a vehicle when purchasing from the manufacturer.

Joint Account

An account with two parties who share equal responsibility to repay the loan.