Use this glossary of common car loan terms.

Acceleration Clause:

If you default on a loan this clause allows the lender to speed up the rate in which the loan is paid off. This can include an entire balance to be paid off immediately.

Agreement of Sale:

Otherwise known as a sales or purchase agreement, this agreement basically states that the seller is selling and the buyer is buying under a specified set of terms. Both parties would then sign the contract.

Amortization:

Calculates the loan payment including interest on the outstanding balance to be paid off at the end of a fixed period.

Annual Percentage Rate (APR):

Often confused with interest rate, an APR supplies the cost of credit over the course of a year. It is supplied as a percentage taking into consideration the amount finance, any charges, and the term of the loan.

Appraisal:

An estimate of the value of property, made by a professional appraiser.

Appraisal Fee:

A service fee for estimating the value of property.

Asset:

Property that can be used to repay debt, such as stocks, bonds, cars or a house.

Automated Teller Machines (ATMs):

Essentially computer terminals in which customers can withdrawal, deposit, or received balance statements of their bank accounts or credit cards.

Billing Error:

Any mistake in your monthly statement.

Broker:

A person who assists a client in negotiating contracts or assisting in the arrangement of funding, but does not loan the money themselves.

Business Days:

The period of time during a given work week that a company considers itself open, national holidays and weekends are usually not considered business days. Feel free to make an inquiry at the company your working with to find out what days it counts as business days under the Truth in Lending and Electronic Fund Transfer Acts.

Certificate of Title:

Is evidence of vehicle ownership issued by the Department of Motor Vehicles when it has confirmed said ownership. There is a fee to receive one based on state, taxes and other possible registration fees.

Closing:

The meeting between the buyer, seller and lender where the property and funds legally change hands. Also called settlement.

Cloud (On Title):

An outstanding claim which negatively affects the marketability of title.

Collateral:

Property offered to support a loan that can be seized if you default on your payments. Car and/or a house would be a good example.

Commission:

When a real estate agent or broker finds and completes a sale, that individual is paid money by the seller for those services rendered.

Commitment: