Also found in: Dictionary, Thesaurus, Medical, Acronyms, Idioms, Encyclopedia, Wikipedia.


Certificate of Automobile Receivables

A derivative whose value is derived from the receivables on a car loan. This entitles the owner to a claim on the principal and interest payments on the particular car loans underpinning the security. The equivalent of the coupon on CARS is a percentage of the interest and principal paid on car loans. An obvious risk associated with CARS is the possibility that a substantial number of loans will default. See also: Credit risk, Mortgage-backed security.


References in periodicals archive ?
CARS tells the story of Lightning McQueen, a hotshot rookie racecar driven to succeed, who discovers that life is about the journey, not the finish line, when he finds himself unexpectedly detoured in the sleepy Route 66 town of Radiator Springs.