The value of a pre-owned vehicle.
A person who obtains credit from a lender with the understanding that repayment is expected within a certain period.
The initial amount financed by the bank.
Coverage that pays for property loss caused by theft, vandalism, fire, flood, hail and glass breakage.
A record of an individual’s paid and unpaid debts. A credit history helps a lender to decide whether a potential borrower is a suitable candidate for a loan.
A report reflecting an individual’s paid and unpaid debts. It consists of a person’s credit history and payment profile.
A consumer’s eligibility to borrow cash based on the number of accounts opened, the types of accounts, payment history and account balances.
The amount owed to the lender.
The older the vehicle, the lower its value. This is referred to as depreciation.
The value of your vehicle, minus the total amount owed on it.
An extended warranty to the existing warranty that comes standard with your vehicle, the most common being a 2 Year, Unlimited km warranty.
Fixed rate loan
The interest rate remains stable throughout the loan term.
To find out about repayments, interest rates and terms.
The mechanical and physical evaluation of a vehicle. The car gets a full body search, so to speak.
Buying a vehicle on credit and making payments regularly for a certain period.
The cost of borrowing money.
The amount of interest charged on a loan, usually expressed as a percentage per year.
The individual or company that finances a borrower with the understanding that those funds must be repaid, with interest, at regular intervals. The lender can be a bank, credit union or finance broker.
A financial agreement between a lender (usually a bank) and a borrower, where the bank lends money for an agreed period and the borrower is required to repay every cent, with interest, over an agreed period.
The amount owed on a loan after deducting the payments made.
The written agreement between a borrower and a lender, which states the terms of the loan.
The original producer of a vehicle.
The monthly amount due to the finance institution to repay the initial loan which consists of capital and interest.
The borrower’s legal responsibility to repay a loan.
Private to private finance
Purchasing a vehicle from a private individual.
The period of time, usually one to two months where a client does not have to pay an instalment to the bank for their vehicle. It is the window period from when the refinancing company settles the initial loan and when the first instalment becomes due for the new finance agreement.
The ability to meet a lender’s criteria for granting credit.
The annual rate of interest on a loan, expressed as a percentage.
Refinancing refers to the replacement of an existing debt obligation with a debt obligation under different terms, with the objective decreasing one’s monthly instalment or shortening the term.
Balance due at the end of the finance agreement.
The length of a loan, usually expressed in months or years.
Vehicle Identification Number (VIN)
This is your vehicle’s unique fingerprint. The 17-digit alphanumeric number is usually located on the dashboard as well as embossed somewhere on the vehicle’s chassis and furthermore there is a chassis plate either riveted somewhere on the vehicle body, usually in the engine compartment or as with the newer vehicles instead of a metal plate there is a non-removable sticker reflecting the vehicle’s chassis number and various other details.
A guarantee from the dealer or manufacturer that a vehicle will perform as specified. Warranties usually cover specific mechanical or electrical problems for certain mileage or periods, i.e. 100 000km/5-year manufacturer’s warranty.