|
Word |
Definition |
|
|
|
Incentive Blowout
|
This is the term referring to a particular event at a dealership that offers several incentives for consumers to lease a vehicle. Lease blowout incentives can include, but are not limited to, no down payment, zero percent interest rate, low monthly payments, lowered MSRP, and nothing due at signing.
|
|
|
First Party
|
Refers to the insured person.
|
|
|
Solid Tire
|
Solid tires have no hollow center and hold no air (non-pneumatic). They are typically made of plastic or a composite of rubber/plastic and are used mostly on lawnmowers, skateboards, scooters, etc.
|
|
|
Glass Insurance
|
Insurance rider that covers damage to a vehicle's glass.
|
|
|
Net Trade-In Allowance
|
This is the actual amount the dealership is giving you for your trade in. Many consumers fail to realize that this amount is not on top of whatever is needed to pay your trade-in off, should you still owe on it; this is the total amount given. If this amount in not enough to pay off your trade-in, the remaining amount from your trade-in loan is factored into your lease payments. Several dealerships offer to pay off your trade-in no matter how much you owe. Pay very close attention because many times they will pay a certain amount (the Net Trade-In Allowance), and the remaining amount will be added to your lease.
|
|
|
Wheel Size
|
The overall dimensions of a vehicle's rim in diameter and width, lip to lip. Wheel is a synonym for rim.
|
|
|
GAP Insurance
|
When a consumer buys a car, he/she is often offered GAP insurance, among other insurance products. If the buyer's vehicle is totaled, auto insurance may pay much less than the borrower owes on it. GAP insurance pays for the difference.
|
|
|
Liability on an Account
|
Refers to a person or entity's legal obligation to repay a debt.
|
|
|
Credit History
|
Also called Credit Report. This is a report of the individual's credit history that is prepared by a credit bureau and used by the lender (bank, finance company) in determining an applicant's creditworthiness.
|
|
|
Tread Pattern
|
Tread pattern describes the particular pattern formed by the tire's blocks, sipes, and grooves. Each model of tire has a different and specific tread pattern.
|
|
|
Excess Mileage
|
This is the amount of mileage over what is allotted in the lease agreement. Most leases allow for an average of 1,000 miles for every month of the lease. For example, if you signed a 36-month lease and the vehicle started with a mileage of 17, the lease agreement would allow for 36,000 miles during the lease term, bringing the maximum mileage at lease turn-in to 36,017. Any mileage past this point would be penalized at a specified per-mile cost. This cost varies from lease to lease, but can end up being one of the largest penalties at lease turn-in if the lessee is not cautious.
|
|
|
Trade-in Allowance
|
Refers to the amount of credit granted to the individual turning in a vehicle to be used toward the purchase of a new or used vehicle. This generally lowers the cash price due on the new/used vehicle the person is trying to buy.
|
|
|
Occurrence
|
Event or exposure to conditions during the term of an insurance policy.
|
|
|
Credit Bureau
|
Also called Consumer Reporting Bureau. Organization that prepares reports that lenders use to determine an applicant's creditworthiness. Reports rely on data obtained from credit repositories and other sources. Examples of credit bureaus include Experian, TransUnion and Equifax.
|
|
|
Off-road Tires
|
Tires manufactured specifically for use in off-road conditions. These tires possess more aggressive tread than normal all-season tires, and also come studded at times. These tires are not recommended for normal on-road use.
|
|
|
Wheel Alignment
|
This refers to the angular settings of the wheels and suspension components of your vehicle. It consists of three angular measurements: camber, caster, and toe.
|
|
|
Lender
|
Refers to the institution, organization, or individual that lends money to a borrower with the understanding, expressed in a written contract, that such funds will be repaid, with interest, based on a clearly defined payment schedule. A lender may be a bank, credit union, or finance broker.
|
|
|
New Car Prep
|
The work done by the dealership to prepare a vehicle for delivery. This can include removing plastic coverings, installing license plate brackets, setting the vehicle's computer, cleaning the vehicle, and adding fluids.
|
|
|
Interest
|
Amount it costs to borrow money, usually expressed as a percentage.
|
|
|
Billing Error
|
Mistake that appears on a bill.
|
