acceptance
A buyer's or seller's agreement to enter into a contract and be bound by the terms of the offer.

additional Principal Payment
A payment made by a borrower of more than the scheduled principal amount due, in order to reduce the outstanding balance on the loan, to save on interest over the life of the loan and/or pay off the loan early.

add-ons
Products or services sold by dealerships that can be added on to the vehicle.

accrued Interest
Interest earned but not yet paid.

adjustable Rate
An interest rate that changes periodically according to an index.

adjustable Rate loan
A loan for which the interest rate is adjusted periodically based on a preselected index. Thus, interest rate and payments rise and fall with the market.

adjustment Date
The date on which the interest rate changes for an adjustable-rate loan.

adjustment period
The period that elapses between the adjustment dates for an adjustable rate loan, typically six months or one year.

affordability analysis (pre-qualification)
A preliminary analysis of a borrower's ability to afford a vehicle or other purchase. An affordability analysis takes into consideration factors such as income, liabilities, and available funds, the likely taxes and insurance for the boat, and the estimated closing costs.

amortization
The gradual repayment of a loan by periodic installments.

amortization schedule
A timetable for payment of a loan. An amortization schedule shows the amount of each payment applied to interest and principal and the remaining balance after each payment is made.

amortization term (period)
The amount of time it takes to pay off the loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed rate loan, the amortization term is 360 months.

amortize
To repay a loan with regular payments that cover both principal and interest.

annual percentage rate (APR)
The effective cost of a loan stated as a yearly rate taking into account such items as interest, vehicle insurance, most closing costs, discount points and loan origination fees.

application fee
A fee usually paid at the time an application is given to a lender for assistance in completing and reviewing an application. Some lenders collect fees for a vehicle appraisal and a credit report, instead of an application fee, at the time of application.

appreciation
An increase in the value of a vessel due to changes in market conditions or other causes. Inflation, increased demand and vehicle improvement are all causes of appreciation. Depreciation is the opposite of appreciation.

assessment
A report written by a marine surveyor after conducting a thorough examination of a boat.

asset
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

assignment
The method of transferring a right or contract, such as the terms of a loan, from one person to another.

assumable loan
A loan that allows a new purchaser of the vehicle to take over, or assume, the loan obligations of the seller when a vehicle is sold.

assumption
The buyer's acceptance of liability for the seller's existing loan. See assumable loan.

assumption clause
A provision in an assumable loan that allows a buyer to assume responsibility for the seller's loan. The loan does not need to be paid in full by the original borrower (seller) upon sale or transfer of the property.

assumption fee
The fee paid to a lender (usually by the buyer) for the lender's agreement to start collecting payment from the buyer instead of the original borrower (seller).