Car-Buying Terms Glossary
Hey there, Mazda drivers and luxury car fans! You might be on the hunt for a new set of wheels, but you’re still exploring the terminology required to help you do it—if that’s the case, you’ve come to the right place. Our team at Mazda of Abington put together this car-buying terms glossary to assist. With us on your side, you’ll soon be taking out your new ride on those Willow Grove, Willow Manor, or Glenside, Pennsylvania, roads.
First, let’s study up a bit. Just in time for the school year, we’re going to run through the ABCs of car terms. Learn this lingo, and you’ll be a master. Read on for more information.
Breaking Down the Dictionary: Terms A to K
Can you sing your ABCs backward? Even when we sing along to a catchy song—you know the one—it’s probably best to start with A. In this case, we’re opening our car-buying dictionary and starting with the Annual Percentage Rate. So, what does that mean?
Annual Percentage Rate (APR): Often shortened to “APR,” this is the finance rate when you lease or loan, and it calculates the percentage of interest dealt annually.
Dealer Incentives: These incentives can translate directly to the term “specials.” It’s an offer that might come directly from the manufacturer in question, or it’s a deal from a dealership. See what we have available on our website!
Dealer Prep: These are fees that are added to the overall cost of a new car when it’s being prepared for sale. Prep includes transport to the dealership, as well as overviews.
Down Payment: Ever heard of putting down a down payment? This is, essentially, cash paid at the start, or up-front, toward the financed amount. It could be on a lease or a loan. It’s good to note that down payments can help to reduce your monthly payment during the process of financing. Be sure to talk to our team about it.
Early Termination: An early termination means bringing a lease or a loan to a close prematurely or before its ordained end date. This may incur fees.
Extended Warranty: This is an agreement that covers different areas of service, such as routine maintenance and certain repairs. Your extended warranty could also be called a “service contract.” Ask what they entail when you review one.
Fair Market Value: This is the overall worth, or value, of a leased vehicle at the end of its lease.
Dealer Talk: Terms L to Z
As the Jackson 5 once said, “A, B, C / Easy as 1, 2, 3.” It really is as easy as 1, 2, 3 when you put your mind to it. Next up in our glossary are terms L through Z, starting with…
Lease: Essentially, leases are long-term rentals. A driver or a lessee uses the vehicle during that period and doesn’t go beyond certain limitations, such as a pre-determined mileage. Monthly payments go toward the car, and leases are returned at the end of the term. Then, you have the choice to bring it back or buy it, depending on your preference.
Lease Extension: This agreement extends the lease beyond its first term, typically without adjustments to payment expectations.
Mileage Limit/Allowance: This is the maximum distance a leased vehicle may be driven.
MSRP: The MSRP is the manufacturer’s suggested retail price. This price includes the base price, as well as all optional add-ons. It’s also listed on the vehicle’s window sticker.
Pre-Qualify: When you pre-qualify, a financer confirms your (or the buyer’s) eligibility without needing to commit to it. Similarly, if you visit our website, you’ll find an available finance application to get pre-approved before coming in. This is the case with a variety of dealers.
Term: A term is the full length of a lease, as well as a loan. Typically, leases stretch from anywhere from one to three years, whereas loans average around five to six years.
Trade-In Value: This is the value a dealership will pay you for your vehicle when you decide to bring it in to trade. This can be applied to your next car, and you can get quotes online before your appraisal.
I Found That (Car!): Put Your Dealer Terms to the Test
Now that you’ve studied up on your car-buying terms glossary, you’ve found a new realm of expertise! If you’re ready to put these to the test, you know who to call. Swing by our dealer at Mazda of Abington and tell our team what you’re looking for in a new car. Whether you want to set up your trade-in, figure out its value, or just shop around, we’re here for it.
Drivers of Willow Grove, Willow Manor, and Glenside, PA, should get in touch with us. Visit us today!