late charge
Penalty paid by a borrower when a payment is made after the due date.

lender
The bank or lending agency offering the loan.

lien
A claim by one person on the property of another for payment of a debt.

list price
The manufacturer's suggested retail price for a vehicle. Also called "MSRP" or "sticker price."

loan administration (or loan servicing)
The collection of loan payments from borrowers and related responsibilities.

loan application
Document required by lenders prior to loan approval containing detailed information about the borrower and vehicle.

loan application fee
Fee paid by prospective buyer to lender when applying for a loan.

loan origination fee
Fee charged by a lender for processing a loan, usually expressed as a percentage of the loan (or points), which pays for the work in evaluating and processing the loan.

loan servicing
See loan administration.

loan-to-value ratio (LTV)
The percentage of the vehicle value borrowed. (Loan amount/vehicle value=LTV)

lock or lock In
A lender's guarantee of an interest rate for a set period of time, usually between loan application and loan closing; protects borrower against rate increases during that time.