Borrower is one of the auto finance term that you need to know. The borrower is one who takes out the loan and will be responsible for paying it back. The title is a legal document that says who owns the vehicle and if there is a lien on it. You should try your best to keep the title clear. If your credit score is low, then you may be required to put down collateral. This is an asset that is used to secure your loan. If you cannot pay the loan off, then you can potentially lose the asset.
Your vehicle tends to depreciate over time. Depreciation is the process of losing value. You are required to have insurance on your car. If you get into an accident, then insurance covers the cost of repair or replacement.
Categories:
Finance