Wisconsin Car Loan Glossary

• MSRP
  MSRP is short for Manufacturer's Suggested Retail Price. It is what the car maker recommends selling the vehicle for along with each of its options.
  
• Accrual
  This is the accumulation of interest on a loan. Usually the amount is calculated as a percentage of the loan that is added to the principal, or accrued every year.
  
• Annual Percentage Rate
  Annual Percentage Rate (APR) is a rate of interest. It includes the fees and extras tacked on the loan in order to acquire it.
  
• Test Drive
  This is an option offered by most car dealerships – giving you the opportunity to actually drive the car on the streets briefly in order to get a feel for the vehicle and how it handles before making a decision to buy.
  
• Base Price
  This is the price of a vehicle before the dealership adds extra equipment, warranties and other options.
  
• Kelly Blue Book
  This is an authoritative source for determining a used car’s value both as a trade-in as well as for private sale.
  
• Consumer Reporting Agency
  One of three primary agencies that collects data on consumer credit and credit worthiness, by tracking open credit accounts and loans and keeping a record of open and closed debts and the payment history for those debts over a period of time. The three main consumer reporting agencies are Experian, Equifax and TransUnion.
  
• Depreciation
  This is the decline of value for an automobile which usually begins the minute it is driven off the car lot by a buyer.
  
• Lemon Law
  This is a term used in reference to laws of many states that protect buyers by giving them options if they are sold vehicles with hidden, substantial defects.
  
• Truth-In-Lending Act
  This is a federal law that requires lenders to disclose terms of credit or a loan in a standard, easy to read format.