balloon loan
A short-term fixed-rate loan with low payments for a set number of years and one large final balloon payment of the remainder of the principal.

balance
The amount of money in an account, such as savings or checking, or the amount of a loan remaining to be paid.

balance Sheet
A document showing the financial situation -- assets, liabilities, and net worth -- of a company at a specific point in time.

bankruptcy
Proclamation by a court of an individual's inability to pay debts. Petition may be brought by an individual or his creditors, with a goal of orderly and equitable settlement of obligations.

base price
The selling price of a vehicle without options.

bearer
The legal owner of a piece of property.

Bill of Sale
A document by which one transfers ownership of goods to another.

blue book
A general term for a reference manual used to determine the value of used boats or other vehicles.

bond
A document representing a right to certain payments on underlying collateral.

borrower
An individual who applies for and receives a loan with the intention of repaying the loan in full.

bridge loan (swing loan)
A form of second trust that is collateralized by the borrower's present vehicle (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new vehicle before the present vehicle is sold.

broker
An individual who assists in arranging funding or negotiating contracts for the sale of a vehicle for a client but does not loan money himself.

buy-down
A situation in which the seller contributes money which allows the lender to give the buyer a lower rate and payment, usually in exchange for an increase in sales price.

buyer's market
Market conditions that favor buyers. With more sellers than buyers in the market, buyers have ample choice of properties and can negotiate lower prices.