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Definition |
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Creditor
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Term refers to a company, institution or individual that an individual borrows money from or owes money to.
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Ply
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A layer of corded fabric stretching from bead to bead that forms much of the body of a tire between tread and inner lining.
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Total Loss
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When the damages to a vehicle or property exceed the cost to repair, this is referred to as a total loss.
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Reinstatement
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Refers to the restoration of a policy that has been cancelled to full in-force effect.
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Borrower
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Person who obtains credit from a lender with the understanding that the loan will be paid back according to the loan contract terms and in accordance with a set schedule.
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Tread wear
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This refers to the amount of life, measured in miles or kilometers, a tire is expected to last by the manufacturer.
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Maturity Date
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The date on which the remaining loan balance becomes due and payable.
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DOHC/SOHC/OHV
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These are the acronyms for Single Overhead Cam, Dual Overhead Cam, and Overhead Valve. They describe the vehicle's cylinder head design and operation.
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Certificate of Insurance
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Proof of insurance coverage document issued by the insurance carrier.
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Early Termination
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Also called breaking a lease, this is the early termination of a lease by the lessee, before the agreed-upon date of lease end. Early termination is usually heavily frowned upon by both dealerships and lease companies, and can carry heavy fines and penalties. However, early termination is not always the fault of the lessee. Accidents, theft, and vandalism rendering a vehicle immobile are all early termination situations where the early termination penalties would be in effect. Purchasing coverage through GAP insurance is the only way for the lessee to avoid payment of these penalties.
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Car Rental
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This is a vehicle that has been used by a rental company and returned to the dealership to be re-sold or re-leased. These vehicles are notorious for having excessive wear and tear, and should be checked over thoroughly by a trusted technician before entering into a lease.
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Inception (Acquisition) Fee
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A fee charged by the leasing company for filling out and processing paperwork. This fees is sometimes negotiable.
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Payment Plans
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Method of paying insurance premiums offered by the insurer. Includes monthly, quarterly, semi-annually and annually.
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Rim
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The steel or alloy centerpiece that houses a tire, typically held onto a hub by lugs and lugnuts.
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Amount Financed
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Refers to the amount of credit provided by a lender.
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SR-22, Certificate of Financial Responsibility (CFR)
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A document required by the court that demonstrates proof of financial responsibility for persons convicted of certain traffic violations.
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Front Track/Rear Track
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This is referring to the axle track of a vehicle with front and rear drive axles. It is measured in inches, and the measurement takes place from centerline to centerline of the vehicle's tires, measured from the perspective of directly in front of or directly behind the vehicle for front or rear measurements, respectively.
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Waiver
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Also called an exclusion endorsement. Refers to an agreement, attached to the policy, and accepted by the insured, to eliminate a specified hazard or pre-existing physical condition.
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Lease Rate
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The lease rate is a shortened way of stating the lease interest rate. The interest rate of a lease is also referred to as the money factor. It is always expressed as a very small decimal, and must be multiplied by 2,400 to arrive at an equivalent APR. Since there is really no money being lent to the lessee, the interest rate is more of a depreciation fee. For example, if you have a money factor of 0.00268, you would simply multiply the money factor by 2,400 to arrive at your equivalent APR (i.e. - 0.00268 x 2,400 = 6.432 or 6.4%).
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Franchised Dealership
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Refers to an automobile dealership that the manufacturer authorizes to sell its products.
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