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Negligence
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When someone fails to exercise due care and damages or injury result, this is termed negligence.
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Captive Lease Company
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This term refers to a lease company that is actually a division of an auto manufacturer. Many of the everyday leases that occur are through captive lease companies as they provide the most profitable option for both the dealership and the manufacturer. This is also an easy way for a manufacturer to boost sales of a particular model, offering lease incentives through their in-house finance company.
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Lessee
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Refers to the person who signs a lease for temporary use of a vehicle.
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Brand
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The manufacturer of a particular type of tire. Goodyear, Uniroyal, Michelin, Firestone, and Kelly are common brands of tires.
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Upside-down
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Term refers to a situation where the balance on a loan exceeds the vehicle's actual value.
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Regulation Z
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This is a regulation that implements the Truth-in-Lending Act. Regulation Z applies to all lenders and requires full disclosure of all loan terms.
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Guarantee of Title
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Letter that guarantees the delivery of the Certificate of Title, properly executed.
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Grace Period
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The amount of time after the due date that the lender allows the borrower to remand the payment without penalty.
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Termination Fee
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The termination fee is the amount of money owed for a vehicle at lease end, should the lessee decide to exercise the buy option of the lease and pay the residual value. This fee typically includes any finance charges, taxes, state fees, penalties, and dealer prep fees. A consumer's security deposit can be used toward this fee.
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Bias Ply
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Also known as Cross-Ply, bias ply tires have belts that run diagonally across and on top of each other from bead to bead, typically at angles in the range of 30 to 40 degrees. This provides the advantage of allowing the tire body more flexibility. This allows for a smoother ride over rough surfaces.
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Lienholder
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The organization, or person, with a financial interest in property up to the amount still owed or borrowed on the property. This is typically a finance or lease company.
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Load Range
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The load range describes a given tire's carrying capacity at a given psi. It is measured using a Load Range Chart.
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Truth-in-Lending Act
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Federal law that requires disclosure to the applicant of credit terms using a standard format. The law is intended to facilitate comparisons of different financial institutions' lending terms.
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Lease with Bad Credit
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This term refers to leases offered to consumers with less than average credit. A consumer's credit rating is determined by credit reporting agencies like Equifax, Transunion, and Experian. The reporting agency gives each consumer a specific number to determine his/her credit rating. If that number falls below the average, a person is deemed to have bad credit. Leasing companies will sometimes offer leases to consumers with bad credit, although typically with much higher fees and interest rates.
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Retread
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A tire that has been refitted with new tread, secured to a used internal housing. This practice is most common with large semi-truck and industrial tires.
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Claimant
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The individual or entity making a claim.
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Lessor
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This is the term for the company, financial agency, or manufacturer which grants the lease and maintains ownership of the vehicle. The auto dealership sells the vehicle to the lessor. The lessor, however, instead of taking possession of the vehicle, allows the lessee to take possession of the vehicle via a lease agreement.
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Default
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Failure to repay a financial obligation, such as a loan, or otherwise fail to live up to the terms of the financial contract.
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Safety Glass
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A particular type of glass that is shatter resistant thanks to a film of plastic or other material covering it. Typically windshields are made of safety glass.
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Bankrupt
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Refers to a person, company or organization that, though a court proceeding, is relieved from payment of all debts after surrendering all assets to a trustee appointed by the court.
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