Car Buying Terms to Help you Buy a New Car.Hi there. This is the Internet Director, at Brien Ford in Everett, Washington.Most dealers don't want you to know what's going on when you visit them to buy a car. Brien Ford is different and we have developed a series of websites to inform you, give you the new and used care dealer "low down" so you can make the best decision for yourself. To help you get started, here is a list of common car buying terms and what they really mean. MSRP: Retail price of a vehicle suggested by the manufacturer. This is not the price you HAVE to pay for a vehicle. 2nd Sticker: Dealers refer to this as "market adjustment" but it's really just a way to get the negotiations started at a higher cost to the customer. You should NEVER pay this inflated price for a vehicle! O.A.C. "On approval of credit" Usually posted in the fine print on and ads that display a special, low interest rate. Beacon Score: Your individual credit score that partially determines the finance/interest rate you may qualify for. You should know what your credit history looks like. Some dealers may say your credit is worse than it really is just so they can overcharge you for the interest rate and make more profit at your expense. Term: The number of monthly payments on a loan. Auto loans range from 24-84 months. Some dealers may show you a lower payment but making the loan for a longer term. This is a common "trick" to make you think you are getting a better deal. Longer terms may lower the payment, but usually increase the total you pay over the entire term. Rate: The percentage of the loan charged to the purchaser by the lender. Finance Charge: the total amount of interest charged over the term of the loan. It is important to know the finance charge when deciding which loan option is best. Finance charge plus the total amount you finance equals the REAL cost of the vehicle. Click here for more infor on "auto loans" Incentive Rate: a special interest rate (0%, 1.9% etc.) offered by the manufacturer. Incentive rates are offered O.A.C. to those with high beacon/credit scores. Sometimes different factors, such as cash down payment may help a buyer with a lower credit score qualify for these special interest rates. Always ask your sales consultant to show you all your options. Rebate: An amount of money offered by the manufacturer to help lower your cost. Most rebates have restrictions and not all buyers will qualify. The dealership should always tell you if an advertised price includes rebates and what type of buyer qualifies for those rebates. Your price may be higher if you do not qualify for a given rebate. Loss Leader: A new auto chosen by a dealership to be advertised and sold at a loss in order to draw a large number of customers to the dealership. Negative Equity: Also referred to as "upside down" or "buried". This is a common situation that occurs when you owe more to the lender than your trade is actually worth. Click here for more on the secret car dealers don't want you to know about trade values. The Brien Ford car buying website has
the latest interactive information on the new Ford line-up, no obligation
price quotes, and a great selection of used cars and trucks that will save
you thousands!
Want more information about car buying? Click here to view a site listing 4 simple steps to buying a car. |
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Ford 5200 Evergreen Way, Everett,
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