APR (Annual Percentage Rate) – The interest rate on a car loan.
Blue Book Value – A guidebook or online resource for determining the approximate value of used cars and trucks based on their make, model, and year.
Cars History Report – It is a document providing information about previous owners, accident and damage, or any other significant events that a vehicle has been through.
Car Loan – Money borrowed to purchase a car, which is typically paid back over time with interest.
Car Warranty – An agreement in which a manufacturer or dealer promises to repair or replace certain parts of a vehicle in the event of defects or malfunctions.
Co-Signer – A person who signs a loan or lease agreement with the primary borrower and is responsible for the debt if the primary borrower defaults.
Comprehensive Coverage – A type of auto insurance that covers damages to a vehicle resulting from non-collision events, such as theft, fire, or natural disasters.
Credit Score – A numerical representation of a person’s creditworthiness, typically based on factors such as payment history, credit utilization, and outstanding debt.
Down Payment – The initial payment made by a consumer when purchasing a vehicle, usually a portion of the total purchase price.
Dealer Invoice Price – The price a dealer pays to the manufacturer for a vehicle.
Depreciation – The decrease in value of a vehicle over time.
Extended Warranty – A warranty that provides coverage for a vehicle after the manufacturer’s warranty has expired.
Financing – The process of borrowing money to purchase a vehicle, typically through a bank or car dealership.
GAP Insurance – A type of insurance that covers the difference between the amount still owed on a car loan and the actual cash value of the car in the event of a total loss, such as theft or a collision.
Haggling – The process of negotiating the price of a vehicle with a dealer or private seller.
Insurance – A contract that provides financial protection in the event of an accident or other covered event.
Kelley Blue Book – A website and publication that provides vehicle values, expert reviews and consumer information to help consumers make informed car-buying decisions.
Lease – An agreement where a consumer rents a vehicle for a certain period of time for a set amount of money each month.
MSRP (Manufacturer’s Suggested Retail Price) – The price suggested by the manufacturer as the retail price for a vehicle.
Odometer – An instrument in a vehicle that displays the distance that the vehicle has been driven.
Personal Contract Purchase (PCP) – A type of car finance where the consumer pays an initial deposit followed by fixed monthly payments, with the option to purchase the vehicle at the end of the contract.
Pre-Owned – A vehicle that has been previously owned and driven.
Repair Cost – The cost of fixing damages to a vehicle caused by an accident or other covered event.
Trade-in Value – The value of a vehicle that a consumer currently owns and wants to trade in as a down payment towards a new vehicle.
Trade-in – The process of trading in a used vehicle as part of the purchase of a new vehicle.
Vehicle Identification Number (VIN) – A unique 17-character code that can be used to identify a specific vehicle.
We hope these terms are helpful as you are working towards getting your next car!