Industry jargon can be dizzying. Here are some explanations to help you navigate.


Amount Financed

In a finance contract, the agreed-upon sale price of the vehicle, plus any charges for accessories, taxes, title and registration, government fees, optional products (for example, service contracts and vehicle or payment protection products), less any down payment and/or net trade-in allowance. This is the amount that is subject to finance charges. 

Annual Percentage Rate (APR)

The rate of interest charged annually on credit, expressed as a percentage. 

Billing Address

The mailing address to which you would like to have your monthly billing statement delivered to you. Typically, this is your home address, but can be any other address you request to have your monthly billing statement delivered, including a P.O. Box. You may update your billing address by contacting us by phone. 


The amount of a vehicle's projected decline in value through normal use during the term of the loan. 

Down Payment

An initial amount paid to reduce the amount financed and lower the monthly payment requirement. Down payment required depends on credit standing and other criteria. 

Gap Protection

A policy or agreement that provides financial protection to cover the gap between the loan balance and insurance settlement in the event the vehicle is "totaled" or stolen. 

Manufacturer's Suggested Retail Price (MSRP)

The retail price of the vehicle as recommended by the manufacturer. 

Sales Price

The agreed-upon value of a financed vehicle, between the seller and purchaser. 

Sales Tax

A state or locality imposed percentage tax which is assessed on certain goods and/or services at the point of purchase. Sales tax on the vehicle may be imposed at the origination of the loan. 

Simple Interest Financing Method

A method of calculating interest that maximizes principal reduction beginning with the first payment, as opposed to other financing agreements which tailor your initial monthly installments almost entirely toward paying off interest, delaying the bulk of principal reduction. 


The duration of the loan agreement, typically expressed in months. 


The legal document used to identify the owner of a vehicle. On a loan, the lender holds the title to the vehicle. 

Trade-In Value

The value of a vehicle credited toward the purchase of another vehicle.