What are some common terms used when dealing with auto insurance?

We all know what it's like to be confused by technical terms. This experience can make any important decision much more frustrating than it should be. Understanding auto loan terms are especially important because an auto loan is a long-term financial choice. Here we define common auto loan terms, so clearly understanding your loan agreement is just a click or two away. Amortization The act of paying off your loan, with principal and interest included, in installments over the period that was agreed upon between you and the lender. Amount Financed The amount borrowed, including purchase price and any other fees or additions. Annual Percentage Rate (APR) The percent that expresses the amount of interest being charged per year. Any lender is required by law to express the amount of interest they charge in terms of APR. This is universal so that rates can be compared in a fair way by the borrower. Asking Price The amount of money the seller is asking for the item. Closed-end Credit An ...  more