The value of a used vehicle that you trade in to a dealership as part of a purchase.

Products or services sold by dealerships that can be added on to the vehicle. Some examples include rust-proofing, upholstery treatments, alarm systems, and extended warranties. Remember that these add-ons will increase the price of the vehicle, and your monthly payment. Also these items are normally marked up outrageously. Also referred to as snake oil by dealers,because it bites you.

 A company authorized by a manufacturer to sell that manufacturer's products.

A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.

The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net income (FHA/VA loans) or gross monthly income (Conventional loans). See Housing Expenses-to-Income Ratio.

Past and future ability to repay debts.

The difference between the fair market value and current indebtedness, also referred to as the owner's interest.

An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself.

Failure to repay a loan or otherwise meet the terms of your credit agreement.