buying a car

Down Payment

An initial payment made when something is bought on credit.

Car Loan

Monthly payments to pay off the remaining balance on a car after a down payment.

Principle

The money you borrowed, the full amount taken as a loan.

Interest

The monthly charges on your loan.

Lessee

The individual leasing the car, basically the renter.

Lessor

The dealership or owner of the car being leased.

Instant Depreciation

The loss of value that a new car experiences as soon as it is driven off the dealer's lot, typically about 15%.

Certified Pre-Owned

A used vehicle that has been inspected and is still under warranty from the specific manufacturer.

Destination Charges

A fee that the manufacturer charges to deliver a vehicle from the factory to the dealership.

MSRP

Manufacturer's Suggested Retail Price, which is negotiable for the sale of a vehicle.

APR

Annual Percentage Rate, the interest rate charged on the amount of the car loan.

Lien

A legal right to possess another's property until a debt is repaid or an obligation is met.

Car Title

Legal proof of ownership of a vehicle, includes information about the car and the owner's details.

VIN Number

Vehicle Identification Number, a unique 17 character code that identifies a specific vehicle.

Out the Door Price

The final cost of the car, what you pay to drive it off as yours.