Glossary of Auto Loan Related Terms

Pink Slip

A vehicle's title certificate.

PITI

Principal, interest, taxes, and insurance. Also called monthly housing expense.

Plat

A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.

Point-of-Sale (POS)

A method by which consumers can pay for purchases by having their deposit accounts debited electronically without the use of checks.

Points

See Discount Points.

Power of Attorney

A legal document authorizing one person to act on behalf of another.

Prepaids

Expenses necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.

Prepayment

A privilege in a mortgage permitting the borrower to make payments in advance of their due date.

Prepayment Penalty

Money charged for an early repayment of debt. Prepayment penalties are allowed in some form (but not necessarily imposed) in 36 states and the District of Columbia.

Principal

The amount of debt, not counting interest, left on a loan.