Balloon Contract
A loan that is amortized only down to the expected end-of-term value, with a remaining balance to be paid in a lump sum at the end of the term.
Balloon Payment
The final principal payment required from the lessee where the amortization rate provides for less than full principal repayment during the lease term. (e.g., a $10,000 car with a 36- month lease term at 2 percent amortization per month would have a balloon payment of $2,800 in the 37th month).
Best OEM Finance Rate
The best interest rate the car manufacturer's (i.e. Ford, Toyota, etc.) finance company can offer a customer. (i.e. 0% for 60 months)
Bilateral Contract
An agreement where a buyer promises to give money and a seller promises to give property.
Bill Of Sale
A document spelling out a transfer of property.
Blue Book
Known as Kelley Blue Book, it's a guide dealers use to estimate wholesale and retail vehicle pricing. Consumers can also look up their current vehicle online to see what the “blue book value†is if they are looking to sell or trade it in.
Blue-ribbon Condition
The condition of an item that looks brand-new.
Bodily Injury Liability
The part of an auto insurance policy that pays for injuries you may cause another driver or pedestrian. It includes medical expenses and loss of wages.
Bonus Cash
Customer/consumer bonus cash. Can be used with other incentives. This is not always available with leasing. Effectively reduces price of vehicle.
Bonus Credit
FLEET INCENTIVE: A stackable bonus credit that is applied as a discount in the before tax price of the fleet vehicle.
Book Value
The value of a vehicle based on its cost plus any additions, subtracting depreciation.
