Bankrate's financial glossary
Did you run across an unfamiliar term when applying for a mortgage, credit card
or auto loan? Find the meaning here, along with definitions of other financial words
and phrases, in Bankrate.com's financial glossary.
Direct check printers
These operations offer lower prices and greater selection than checking customers get through their banks. Many of these printers are also printing checks for banks that use outside printers. Customers must supply most direct check companies with a voided check or a reorder form from a current batch of checks and a deposit slip. Names and addresses must match with information on file at the account holder’s bank.
An automatic deposit of wages or benefits to a customer's bank account.
Charges for extra services or products sold by the dealer, including rustproofing, undercoating and extended warranties.
An allowance, usually between 2 percent and 3 percent of manufacturer's suggested retail price, that manufacturers provide to dealers. A holdback allowance may allow the dealer to pay the manufacturer less than the invoice price. A buyer could obtain a car below invoice price and the dealer would still make a profit.
Programs offered by manufacturers to increase the sales of slow-selling models or to reduce excess inventories. Dealers may elect to pass on the savings to the buyer.
The amount that a dealer is invoiced by the manufacturer for a vehicle and any options.
Dealer preparation, or dealer prep
An additional charge that dealers try to impose on buyers. It represents pure profit for the dealers, who have already been paid by the manufacturer for the cost of preparing the car for sale.
Dealer sticker price
This is the Monroney sticker price plus the suggested retail price of dealer-installed options, dealer preparation and undercoating. It usually appears on a separate sticker.
The fee charged for transporting the vehicle to the dealer from the manufacturer or port of entry. This charge is to be passed on to the buyer without any markup.
A buyer who lines up financing through an outside financial institution rather than through the dealer is said to have direct financing.