Car Buying Terms Official

: When you owe more on your loan than the car is actually worth. This often happens with long-term loans or small down payments.

: Covers the "gap" between what you owe and what insurance pays if your car is totaled while you have negative equity.

: An optional plan you buy to cover repairs after the factory warranty expires. These are often negotiable or can be bought elsewhere for less. car buying terms

: A used car that has undergone a rigorous inspection and comes with an extended manufacturer warranty.

: A letter from a lender (like a credit union or bank) stating they will lend you a specific amount at a set rate. This is powerful leverage when negotiating at the dealer. 3. The Extras: Protection and Trade-ins : When you owe more on your loan

If you aren't paying cash, these terms will determine your long-term costs.

This blog post breaks down the most essential car buying terms into three categories: pricing, financing, and dealership-specific jargon. : An optional plan you buy to cover

Before you negotiate, you need to know exactly what price you are talking about.