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certificate for automobile receivables (CARS)

certificate for automobile receivables (CARS) definition - business

certificate for automobile receivables (CARS)

A short-term debt security backed by automobile loans and originating when lenders package and resell the automobile loans to the public. CARS provide lenders with more funds to use in additional lending and provide investors with relatively safe securities that pay short-term interest rates slightly above Treasury securities of similar maturity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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