Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Major purchases
| Term | Definition |
|---|---|
| Acquisition fee | An acquisition fee is a charge from a lessor or lender to cover the expenses incurred for arranging a lease or loan. ... Common examples include closing costs, real estate commissions, and development and/or construction fees. |
| Closed end lease | A closed-end lease is a rental agreement that puts no obligation on the lessee (the person making periodic lease payments) |
| Collateral | something pledged as security for repayment of a loan, to be forfeited in the event of a default. |
| Dealer incentives | A dealer incentive is a financial inducement used by manufacturers to motivate dealers to sell a particular product by offering discounts on that product. ... |
| Default | fail to fulfill an obligation, especially to repay a loan or to appear in a court of law. |
| Deficiency | A shortage or insufficiency. The amount by which federal Income Tax due exceeds the amount reported by the taxpayer on his or her return; also, the amount owed by a taxpayer who has not filed a return. |
| Depreciation fee | Depreciated cost is the value of a fixed asset minus all of the accumulated depreciation that has been recorded against it. |
| Early termination | Early termination contract refers to the dissolution of a contract before the term of that contract has concluded. |
| Finance charge | In United States law, a finance charge is any fee representing the cost of credit, or the cost of borrowing. |
| Fixed rate loan | A fixed rate is an interest rate that stays the same for the life of a loan, or for a portion of the loan term, depending on the loan agreement. |
| Inception fees | Inception fees: Any fees that are due at lease inception. Inception fees may include a down payment, security deposit, acquisition fee, first month's payment, taxes or title fees. |
| Installment loan | An installment loan is a type of agreement or contract involving a loan that is repaid over time with a set number of scheduled payments; normally at least two payments are made towards the loan |
| Invoice price | The invoice price is the actual price that the end-customer retailer pays to the manufacturer or distributor for a product. |
| Lease | a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment. |
| Lessee | a person who holds the lease of a property; a tenant. |
| Lessor | a person who leases or lets a property to another; a landlord. |
| Mileage allowance | Mileage allowance is a term the Internal Revenue Service (IRS) uses to refer to the deductibility of expenses car owners accrue while operating a personal vehicle for business, medical, charity, or moving purposes. |
| Mileage charge | The term mileage charge is usually associated with automobile leases or car rentals. These are the per mile fees imposed when a vehicle is driven beyond the miles allowed in the lease or rental agreement. |
| Money factor | The money factor is a method for determining the financing charges on a lease with monthly payments. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400. |
| MSRP | The list price, also known as the manufacturer's suggested retail price, or the recommended retail price, or the suggested retail price of a product is the price at which the manufacturer recommends that the retailer sell the product. |
| Open end lease | An open-end lease is a type of rental agreement that obliges the lessee (the person making periodic lease payments) to make a balloon payment at the end |
| Purchase option | A purchase option is a right to purchase or lease land or other property interests without any obligation to do so. |
| Rebates | a partial refund to someone who has paid too much money for tax, rent, or a utility. |
| Residual value | The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life. |
| Secured loan | What is secured lending? Securing lending is when the borrower is required to give the lender collateral as a form of insurance against defaulting on the loan. |
| Trade-in value | Trade-in value is basically a car dealership's valuation of your car when you opt for a trade-in. |
| Unsecured loan | In finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure |
| Upside down | Upside down describes the situation when you buy something on credit and now owe more for it than it is worth. |
| Variable rate loan | A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument. |
| Warranty | a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time. |
Created by:
Mpolowy21
Popular Business sets