Also known as PTI, this ratio details the percentage of an individual’s income that an auto loan payment will require. Most lenders have a maximum PTI they will allow to avoid offering consumers loans they cannot repay.
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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Pink Slip
Also known as a vehicle title or certification.
Poor Credit
Sometimes called bad credit, this is below average credit, which may include late payments, repossessions, foreclosures and bankruptcy. Poor credit does not mean you cannot be approved for an auto loan.
Power Of Attorney
A legal document authorizing one person to act on behalf of another.
Principal
The total amount owed on a car loan, not including interest.
Proof Of Income
Also known as POI, this includes paystubs, employment verifications and/or bank statements to prove a borrower’s income.