Glossary of Auto Loan Related Terms

Tax

As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.

Term

The period of time between the beginning loan date on the legal documents and the date the entire balance of the loan is due.

Title

A document that gives evidence of an individual's ownership of property.

Trade-in Value

The value of a used vehicle that you trade in to a dealership as part of a purchase.

Trustee

A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law.

Truth-in-Lending

A federal law requiring disclosure of the Annual Percentage Rate to homebuyers shortly after they apply for the loan.