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PLAIN-LANGUAGE GUIDE

Understand the terms behind the decision.

Auto-Cation brings customer, dealership and lender information into one review. These definitions explain the language used throughout the website.

Clarity Score

The automotive prototype starts at 94 and deducts points for price above value, negative equity, financing term, the percentage-point APR gap above a dated comparable benchmark, and optional-product load. Confidence and controlling decision rules are separate. It is not a credit score.

Confidence

How complete, current and authoritative the supporting information is. High confidence means stronger evidence—not a guarantee that a transaction will perform.

Decision Gate

The reason-coded outcome produced after the available evidence is reviewed: Proceed, Proceed with Conditions, Sell Separately or Do Not Proceed.

LTV

Loan-to-value: the starting loan balance divided by the supported vehicle value. Starting loan balance includes financed credit fees and can differ from the disclosed amount financed. Lender-specific LTV definitions may differ. A higher LTV generally means less collateral protection.

Negative Equity

The amount by which a vehicle's loan payoff exceeds its current value. If rolled into another loan, it increases the new amount financed.

DOC

A dealership's daily operating report, often called the Daily Operating Control. It summarizes sales, gross, expenses and departmental performance.

Blue Sky

The intangible value of a dealership beyond tangible assets, liabilities and working capital. A professional valuation considers franchise, market, earnings and transaction terms.

Out of Trust

A serious floorplan condition in which a vehicle has been sold but the related inventory loan has not been paid as required. Delayed or missing titles can intensify funding exposure.

Modeled Leakage

An estimate of potential gross profit or cost opportunity based on entered performance gaps and assumptions. It is directional—not audited savings or guaranteed recovery.

Portfolio Back-Test

A retrospective analysis of de-identified funded loans to compare Auto-Cation signals with later performance, such as delinquency, loss or exception outcomes.

Finance, lease and document terms

APR

Annual percentage rate: the annual cost of credit, including interest and certain fees. It can differ from the interest rate.

Amount financed

The disclosed amount of credit provided. Contract disclosure rules can distinguish this from the face balance; the public calculator is an estimate.

Finance charge

Interest and certain credit-related fees disclosed for the loan. It may exceed the calculator’s estimated interest.

Total of payments

The sum of scheduled payments. Review the contract for additional upfront and conditional charges.

Out-the-door price

Vehicle price plus applicable taxes, fees and selected products, before subtracting down payment or net trade equity.

Capitalized cost

The lease balance before reductions. Adjusted capitalized cost subtracts eligible incentives, cash reduction and positive trade equity.

Money factor

A factor used to calculate the lease rent charge. Multiplying by 2,400 gives a rough annual rate comparison, not a disclosed loan APR.

Residual value

The contract’s stated end-of-lease value. It is not a guaranteed future resale value for the customer.

Due at signing

The itemized initial cash or credits required, potentially including the first payment, fees, deposit, tax and capitalized-cost reduction.

Acquisition / disposition fees

A lease acquisition fee starts the lease. A disposition fee may apply when returning it, subject to contract terms and waivers.

OCR / document extraction

Reading text and fields from a PDF or photo. A successful scan does not establish authenticity or accuracy; confirm the extracted figures.

VIN / HIN

A VIN identifies a road vehicle under the applicable format. A HIN identifies a vessel. Marine and other specialty evaluations require their own identity and valuation rules.

Pricing terms & what we cover

Important: These definitions are educational and do not replace legal, tax, valuation, underwriting or other professional advice. Production results require authoritative data, approved rules and appropriate governance.

Demonstration decision policy v2.1

Lee V. Putney directs the build. This policy is a transparent demonstration, not a calibrated credit model or a legal determination.

Cash purchases do not apply APR or term tests. Lease results use their separate closed-end lease model. Specialty categories do not inherit automotive rules.