| A | B |
|---|
| as is | this has no warranty. It means “what you see is what you get |
| blue book | the name given to the National Automobile Dealers Association (NADA) Official Used Car Guide which lists prices for used cars. |
| dealer prep | an additional up‐front charge the dealer charges for getting a new car into running condition (cleaning, oil, gas, etc.) |
| demo | short for demonstrator, a car that has been used for test drives at a dealership. Keep in mind this is not a new car as it has been “used.” |
| depreciation | the yearly decline in the value of a vehicle |
| express warranty | a written agreement that details what the seller and buyer are responsible for if something needs to be repaired or replaced |
| factory invoice | the cost of the car to the dealer |
| full warranty | a written agreement that defective parts will be repaired or replaced. It is a promise to stand behind the product |
| limited warranty | a written agreement that a defective product will be repaired or replaced under certain conditions. |
| list price | the manufacturer’s suggested retail price (MSRP) or sticker price that is shown on the window of a new car |
| odometer | the gauge on the car that indicates the number of miles a car has been driven. |
| options | extra items such as upgraded stereo, side airbags, sunroofs, that a buyer can choose to purchase with a vehicle |
| service contract | purchased by the buyer at the time of the vehicle purchase and provides maintenance for a specific period of time |
| sticker price | is the total amount that appears on the vehicle’s window |
| down payment | the amount of money the buyer pays before taking out a loan for the remainder of the cost. |
| term | financing terms means words and phrases used in the contract and the conditions and requirements of the contract. Term can also mean the length of time of the loan or lease |
| interest rate | the annual percentage rate of the loan you are borrowing. This is the percentage of the amount you are borrowing |
| rebate | a refund offered by the carmakers or dealers as an incentive to buy a vehicle |
| trade in | vehicle you want to use as a partial trade for the newer vehicle. The dealer will assess the condition of your vehicle and give you a price they are willing to offer you for it |
