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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Late Payment

A car loan payment received after the monthly contract due date.

Lease

An alternative way to finance an automobile in which an individual borrows the vehicle for a period of time while the leasing company remains the owner of the vehicle.

Lessee

The individual who has temporary use of a vehicle in a lease agreement.

Lessor

The company that provides temporary use of a vehicle during a lease agreement.

Lien

Ownership of a vehicle by a finance company until a debt has been repaid.