Decoding the jargon: car loan terminology explained

CATEGORY: GETTING A CAR LOAN

The world of finance can be full of confusing terminology. Car finance is no exception. And while at AA Finance we try to be jargon-free, we recognise that there are words that are used across the industry that can be difficult to understand.

With that in mind we’ve produced this straightforward list of terms, so that you can make sure you’re in the know when it comes to your car loan. You can use this guide to find the definitions of specific terms you’ve come across in your car loan shopping; or read the complete list to get comfortable with car loan and finance terminology before talking to lenders.

Loan agreement (read more)

Interest (read more)

Deposit (read more)

Principle (read more)

Term (read more)

Repayment (read more)

Establishment fee (read more)

PPSR fee (read more)

Secured or Unsecured (read more)

Security (read more)

Credit history/record/rating/score (read more)

Depreciation (read more)

Equity or Negative Equity (read more)

Pre-approval (read more)