Car Buying Terms |
| You can always search for entries (regexp permitted). | |
| Pages: 1 | |
| Term | Definition |
| 3/36 WARRANTY | a 3 year/36 month warranty |
| 7/70 WARRANTY | A 7 year/70 month warranty |
| A.C.V. | Actual Car Value |
| BANK FEES | Fees charged by the bank to approve a deal for a secondary customer |
| BEACON SCORE | The computerised scored based on a person's credit. Banks use the score in determining financing and interest rates. Scores range from 300-850 |
| BLACK BOOK | The book dealerships use to place values on cars that are being traded in. It is based on auction sales. Vehicles are valued at extra clean, clean, average, and rough. It is published once a month |
| BOGE | Someone with bad credit |
| BUY RATE | The minimum rate the bank gives the dealership for a customer. See contract rate |
| BUYER'S REMORSE | The regret experienced by a customer the day after they have purchased a car they either didn't want or couldn't afford |
| CAR-FAX | One of the most popular vehicle history reports |
| CO-SIGNER | Someone who signs with a lesser qualified customer to secure a loan. Both people are responsible for the debt |
| CONTRACT RATE | The maximum rate the dealership can charge the customer |
| CREDIT REPORT | A complete outline of your credit history that is used to determine financing and interest rate. There are three credit bureaus: Exquifax, Experian, and Trans-union |
| D.T.I. | Debt to income |
| DOCUMENTION FEE | Is the fee charged by the dealership for advertising, operation, and delivery costs. This fee varies from dealership to dealership. It is mostly used as another form of profit |
| EXTENDED WARRANTY | See vehicle service contract |
| F & I | Finance and Insurance |
| FINANCE MANAGER | The person with whom banks communicate to get the customer financed; (s)he handles all the paperwork |
| FIRST TIME BUYER | Someone who has never purchased a vehicle. You may have had some loans, but not a car loan, or either you have never had any loans |
| FRANCHISE DEALERSHIP | A dealership that has a new car brand |
| GAP INSURANCE | Insurance that covers the difference between what you owe and what your insurance company will pay in the event of fire, theft, flood, or total loss (wreck) of your vehicle |
| GHOST | Someone who has never established credit before |
| HOLD BACK | The money held back by the manufacturer that is paid to the dealership for each vehicle sold. Hold back varies on each vehicle |
| INHOUSE REBATE | A fake down payment |
| INQUERY | Notations on your credit report every time your credit is pulled |
| inquerys | notations on your credit report every time your credit is pulled |
| INVOICE | The dealership's cost on a new vehicle |
| L.T.V. | Loan to value |
| LEFT BOOK | N.A.D.A trade-in value |
| LENDER | A bank |
| M.S.R.P. | Manufacturer's suggested retail price |
| N.A.D.A BOOK | The book banks use to decide how much money to lend on a particular vehicle. It covers trade-in, loan, and retail values of all vehicles. It is published once a month |
| N.A.D.A. | national automotive dealers association |
| NEGATIVE EQUITY | The difference between what your car is worth and the amount you owe on it |
| OLD SLED | A car that's already seen its better days |
| P.O.I. | Proof of income |
| P.O.R. | Proof of residence (light bill, phone bill, cable bill, etc...) |
| P.T.I. | Payment to income |
| PRIMARY BANK | Bank that deals only with good credit (Wachovia, Suntrust, BB&T, etc...) |
| PRIMARY CUSTOMER | Someone with good credit |
| REBATE | The manufacturer's discount on a new vehicle |
| SALES MANAGER | The person whom oversees the buying of cars, the training of sales people, lot appearance, and advertising |
| SECONDARY BANK | Bank that deals only with bad credit (Americredit, HSBC, Drive, Wellsfargo, etc...) |
| SECONDARY CUSTOMER | Someone with bad credit |
| SPOT DELIVERY | The contracting of a vehicle to a customer without having an approval from a bank yet |
| TITLE FEE | The fee charged by a county tag office for processing a tag |
| UPSIDE DOWN | Owing more for your car than what it's worth |
| VEHICLE HISTORY REPORT | A detailed report about a vehicle's history; for example, from where is was first purchased, if it was wrecked, been a lemon, odometer roll-back, etc... |
| VEHICLE SERVICE CONTRACT | Extra protection for your vehicle after the manufacturer's warranty has expired |
| WALK AROUND | The complete detailed introduction to a vehicle, from hood to trunk |
| Glossary V2.0 | |