Agreed-Upon Selling Price:
The dollar amount the buyer
agrees to pay the dealer for the vehicle.
Annual Percentage Rate (APR):
Also called a finance
rate, this is the interest rate on a loan; a percentage of the
amount borrowed that a lender charges annually for the use
of its money.
Automatic Transmission:
A system that varies the power
and torque to a drivetrain without the use of a foot-operated
clutch.
Alternator:
A device that converts mechanical energy into
electrical energy for the purpose of charging the car battery.
Base Price:
The cost of the car without options; includes
standard equipment and factory warranty.
Collision Coverage:
Insurance that pays for damage to
your car caused by collision with another car or object.
Comprehensive Coverage:
Insurance that pays for
damage to your car caused by things other than collision.
For example, if your car is stolen or vandalized.
Corporate Average Fuel Economy (CAFE):
The
government tracks the average fuel economy of all the
vehicles produced in a single model-year by each individual
manufacturer. CAFE is that rating.
Depreciation:
The decrease in a vehicle's market value
over time. The amount of yearly depreciation is affected by
vehicle condition, resale-marketplace supply and demand,
and make and model reputation.
Down Payment:
Cash paid up-front by a borrower to
reduce the amount financed in a lease or loan.
Drivetrain:
Vehicle components which act together to move
the vehicle forward or backward. On a rear-wheel drive
vehicle, it is the combination of the engine, transmission,
differential and drive shaft. On a front-wheel drive vehicle, it
consists of the engine, transaxle and drive axles.
Excess-Mileage Charges:
Penalties paid at the close of a
lease if the lessee drives the vehicle a greater distance than
the limit stipulated in the contract.
Extended Warranty:
Also known as a service contract, it is
an agreement to cover certain specific service and repairs
beyond the life of the factory warranty.
Factory Warranty:
A factory warranty is issued by the
company that made the product purchased. A factory
warranty states that the product may be returned, refunded
or replaced by the company as long as certain guidelines
are met.
Financing Costs:
An APR, a money factor, or a rent
charge, this is the charge for using the bank's--or another
lender's--money to lease or purchase the car. Also known
as cost of funds.
Finance Rate:
Also called an annual percentage rate; the
interest rate on a loan.
Four-Wheel Drive (4WD):
A transfer case distributes power
to both axles in order to drive all four wheels; also known as
all-wheel drive.
Front-Wheel Drive:
The front wheels are powered by the
engine/transmission, and the rear wheels just follow along.
Generally, these cars are more fuel-efficient than their
rear-wheel drive counterparts, and they operate more easily
in snow.
Interest:
Money paid regularly at a particular rate for the
use of money lent.
Interest Rate:
The proportion of a loan that is charged as
interest to the borrower, typically expressed as an annual
percentage of the loan outstanding.
Lease:
Essentially a long-term rental in which the dealer
(or a third-party) buys a car and allows the lessee to use
it for a specific period of time or agreed mileage while
making monthly payments. At the end of the lease period,
the lessee can either buy the car or return it to the dealer,
depending on the type of lease.
Lease Extension:
An agreement between the lessee and
the lessor to continue the lease beyond the initial term,
generally without altering the monthly payment.
Liability Insurance:
Helps cover the costs of any victims'
injuries and damages that result from a car accident that
you caused.
Manual Transmission:
A transmission that varies the
power and torque through a foot pedal controlled clutch and
a floor-mounted or steering-shaft-mounted gear selection
lever.
Mileage Limit/Allowance:
The maximum distance a
vehicle may be driven during a lease.
Monroney Sticker:
The "window sticker" or price tag on a
new vehicle that lists base price, standard features, optional
features and their retail prices, among other information.
Powertrain:
The combination of engine and transmission.
Pre-Qualify:
To have a lender confirm you are eligible for a
loan without you committing to accepting it.
Principal:
The amount borrowed.
Rear-Wheel Drive (RWD):
The drivetrain in which power is
applied through the rear wheels only.
Rebate:
A partial refund on a new-car purchase offered by
the manufacturer or dealership in order to increase sales.
Rebates can either be deducted from the purchase price or
refunded by mail after the sale has been completed.
Residual Value:
The amount for which you can buy the car
at the end of a lease. It also is an important number in the
lease equation, directly affecting the monthly payment.
Service Contract:
Provides for the repair of certain parts
or problems.
Term:
The length of a lease or loan.
Trade-In Value:
The price a dealer will pay for your current
car when selling you a new one.
Transmission:
The transmission is used to take the
high-speed, low-torque power of the engine and convert
it to a lower-speed, higher-torque output, which ultimately
turns the drive wheels. Lower gears allow fast acceleration,
higher gears provide better gas mileage.
Trim Level:
The level of options or features added to a
model. The car maker selects the attributes of a car to
make it a special variant of the basic version, which is the
`factory standard' version and is the cheapest within the
range.
Up-Front Costs:
The total of all costs that must be paid at
the signing of the contract: down payment plus any fees.
Vehicle Identification Number (VIN):
A 17 digit
identification number, unique to each vehicle, which
includes codes for the manufacturer, year, model, body and
engine specifications.
There it is! You found the vehicle of your dreams at the Philadelphia Auto Show. What's next, now
that you've found what moves you? A trip to your favorite new automobile dealership where you will
work with a salesperson to find the trim level and color perfect for you and to arrange financing. The
Philadelphia Auto Show has compiled key terms to help you through the car buying process.
Did Something Move You?
17
SEE YOUR SUPERNETWORK
BUICK GMC DEALER
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Wilmington, DE
WILLIS BUICK
Smyrna, DE
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Woodbury, NJ
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Bridgeton, NJ
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Cape May Court House, NJ
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Media, PA
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Fleetwood, PA
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Newtown Square, PA
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Boyertown, PA
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Shillington, PA
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Quakertown, PA
WIND GAP BUICK
Wind Gap, PA
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