Clement Pre-Owned

FAQs: Making Payments

What does "PTI" stand for?

The payment-to-income (PTI) ratio is a percentage that describes your car payment in relation to your pre-tax income. As an example, if your monthly car payment is $300 and your gross monthly income is $3,000, then your PTI is 10%. Lenders usually look for a PTI that sits at around 15% when considering how large to make a loan, but this is just one of a host of factors that go into the process of securing the best financing options your unique situation.

What does "POI" stand for?

"POI" stands for proof of income and is a metric that helps our associated lenders verify your stated income during the loan application process. Some common examples of proof of income include:

  • Pay stubs
  • Bank statements
  • Last year's federal tax return
  • Form W-2

What does "POR" stand for?

"POR" stands for proof of residency and is a tool that aids our stable of high-quality lenders confirm your residency during the car loan application process. Some common examples of proof of residency include:

  • Vehicle registration or title
  • Voter registration card
  • Utility or telephone bill
  • Selective Service card
  • Checking or savings account statement

What does "APR" stand for?

"APR" stands for the annual percentage rate. Typically referring to the interest rate of your car loan. This yearly interest rate is what you'll pay in addition to the amount you borrow initially, and can be fixed (unchanging for the duration of your loan term) or variable (may change over the life of the loan).

What does "ACV" stand for?

"ACV" stands for the actual cash value. ACV is used to describe the amount of money a car can be expected to sell for through the large auction networks right now. This is the amount that we can expect to recoup should we choose to sell your car at auction.