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Frequently Asked Questions


Confused by all the technical terms and acronyms you come across while arranging for financing? Here are definitions for some of the most common terms to help you find the right financing for your vehicle needs on eBay.
Annual percentage rate. The percentage that expresses the finance charge on a loan, as a yearly rate.
A loan advance given to the customer in cash or check at the time of closing.
Casual Purchase
The industry term for the purchase of a vehicle from a private third party owner, such as an individual. This is also known as a Private Party or Person-to-Person purchase.
Conversion Van
A van that has typically been altered/added to from the manufacturer's original specification, e.g., a van that has had a sink/stove fitted inside.
Credit Bureau
An independent company that collects credit information on consumers from banks, credit card companies and public records. The three main credit bureaus are Equifax, Experian, and TransUnion.
Credit Report
A report that details an individual's credit history and payment history, supplied by a Credit Bureau.
Down Payment
Amount paid by customer at time of purchase of a vehicle including cash and/or trade-in allowance (may include rebate from manufacturer/dealer).
FICO Score
FICO is an acronym for a credit score developed by Fair Isaac Corporation. A FICO score is a numeric score that ranks your credit history. FICO scores are provided to lenders by credit reporting companies.
Franchised Dealer
A dealership that sells new cars for at least one domestic or import manufacturer. Independent used car lots are not franchised dealerships.
Grey Market
Salvaged title vehicles or vehicles that were previously repossessed.
The amount charged by the lender to customer for borrowing money.
Kelley Blue Book
An industry standard reference guide used when determining the value of used cars. Kelley Blue Book will list a wholesale value and a retail value.
Lemon Law
This is a law that governs the responsibility of a seller or manufacturer for a defective vehicle.
The company that is financing your loan and that has a security interest in your vehicle.
List Price
Also referred to as "MSRP" or "sticker" price. This is the price a manufacturer recommends for a vehicle.
A form of financing in which you borrow money to purchase or refinance the purchase of a vehicle. Monthly payments over the term of the loan pay back the principal balance of the loan along with the interest.
Manufacturer's Suggested Retail Price. Also referred to as "sticker" or "list price". This is the price a manufacturer recommends for a vehicle.
National Auto Dealers Association. An industry standard reference guide that lenders use to determine the value of a used car. Free vehicle pricing information is available at
Non-franchised Dealer
Independent dealerships, generally selling used vehicles.
The original loan amount borrowed, excluding interest. Also referred to as "amount financed".
The percentage rate of interest on a loan presented as an annual percentage of the principal balance.
Retail Value
The approximate value of a vehicle if sold by a dealership or privately. Often referred to as the "Blue Book Value". One of the industry standard sources, Kelley Blue Book, usually lists a Wholesale and Retail value.
Salvage Value
A vehicle that has been seriously damaged beyond economical repair and is purchased by the insurance company to re-sell, at which point a salvage title would be issued.
Simple Interest Loan
Interest is charged periodically on the actual principal balance of the loan for the time outstanding.
SSL or Encryption
SSL (secured sockets layer), encrypts your information, so that only the company that you are transacting with, can decode it. Most browsers support SSL. You can tell if you are in a secure environment by the looking at the URL, where the first few characters will begin with "https". Depending on your browser, there will also be a key or a lock usually in the lower left or right of your screen.
The period of time that loans are subject to. The more common terms are: 24, 36, 48, 60 or 72 months.
The trade-in-value is typically almost equivalent to the Wholesale Blue Book value. Trade-in value is the value of a used vehicle that is being traded in at a dealership as part of a purchase deal.
Vehicle Identification Number. It is listed on the title, the eBay auction page and the dashboard of the car.
Wholesale Value
The approximate price that a dealership will pay to purchase a used vehicle. Often referred to as the "Wholesale Blue Book". One of the industry standard sources, Kelley Blue Book, usually lists a Wholesale and Retail value. The wholesale value is usually equal to the trade-in value of a used vehicle.