10 terms you need to understand when buying cars from dealers

When buying a car; everything must be cut and dried and that includes dealer terms. Knowing these terms; will allow anyone to keep up when negotiating for a brand-new car!

When buying a new car; there is a negotiation to know what terms and important details that need to be covered by salesman and customer. Here are all the relevant dealer terms to know when buying a new car to know, so all aspects of the process are understood!

To have a grasp of these dealer terms to know when buying a new car is an advantage to get better terms, and maximize the sale to anyone’s advantage! Overall, here are the advantages that know dealer terms should give to buyers provided from Philkotse.com.

Knowing car buying lingo is a must!

You are not to be trifled with, and there will be no double talk on the salesman’s part. Every relevant term will help knowing everything that comes when buying a new car.

There will be room to negotiate more when the salesman knows; that you can understand all aspects of the sale. Cool customers will get respect on the sales floor, and not be seen as a potential chump or victim.

Now, here are the terms to arm yourself when shopping for a new car with all dealer terms to know when buying a new car.

1. Chattel mortgage

The fee paid for a bank loan when buying a new car, as an exchange for getting the loan. Another to note is that the loan should be paid dutifully or the car will be repossessed by the banks. This important when acquiring a car by bank financing. This is an important part of financing a new car for car buyers.

2. Dealer incentives

These are special deals and discounts that may apply for the particular model that is of interest for car buyers shopping for new vehicles.

What do you know about dealer incentives?

Look out for these sales; in certain times of the year to hasten disposing of slow-selling cars to make room for newer models. Chances are some buyers will get these to be disposed cars; instead of getting newer models out now. It is imperative for dealers to make room for new inventory on the floor!

>>> Check out: 8 problems with dealerships that car buyers should be aware of.

3. Zero-interest Plan

Most car dealerships post these plans as the best way to get new cars, with almost money for nothing. But, the car buyer must qualify for; and there will be some catch 22’s involved. Although this is the closest that anybody can get their chosen car with the least cost!

Some would call it free money, but there’s no such thing as a free ride with car dealerships. This is a term used to denote APR of the financing rate used for the loan. Overall the interest of the loan is checked over what has been financed and calculated over 12-months.

This is important to note; especially for car buyers getting theirs on bank financing over a yearly period. The buyer can calculate how much it would cost; before deciding on getting any brand -new car.

>>> Also check: Car buying tips & tricks to avoid hidden fees from dealers.

5. Trim Level

This is a technical term that most car noobs would not understand because car salesmen have it in their interest to use this part to get more mileage from a possible bag and tag. Trim refers to what equips any car; from high-end to low-end which is the selling point of premium or budget model that is on the sales floor.

What about "trim level" in terms of buying a car from a dealer?

Take note that the higher the trim level, it will be more expensive than a low-end version too! The trim level will depend on the brand but Toyota, Nissan, Mazda offers the best trim levels for the price too.

>>> Read more: Buying tips: 6 things you need to know about dealer's invoice.

6. Term

This is important because it stipulates how long it would take to pay back bank financing; when getting a car on loan. During this time; the monthly dues should be paid and not missed because it will result in a penalty! Not sticking to the payment schedule; could result in a repossessed car should the borrower not pay his dues.

7. Penalty

When acquiring a bank loan; the dues should be paid on time not late.  Should there be many late payments; there will be a penalty applied to add to the monthly fee. Never miss a scheduled payment or face trouble with enough late payments.

8. Vehicle service contract or service contract

This is the contract entered upon by the car dealership and its client that will cover all or some of the expenses for general maintenance. One other thing to look out for is what and how long does the Vehicle Service Contract or Service Contract extend or if it can be extended too.

Another term that you need to understand is "vehicle service contract or service contract"

Some of the expenses covered are repair, parts, labor, sales tax, and overall maintenance costs that are covered by the vehicle warranty. Some car brands waive their change oil fee and will replace a car part partly or depending on the warranty depending on the Vehicle Service Contract.

9. Resale Value

For car buyers, the resale value is important that’s why they choose trusted brands like Toyota, Honda and similar types. It very subjective, but some car brands depreciate fast, and some don’t when re-selling!

Quite subjective is this concept, but cars with good maintenance and everything is like brand new

Quite subjective is this concept, but cars with good maintenance and everything is like brand new. Some cars will have a good resale value compared to cars other than Toyota or Honda. Choose cars with the best resale value for everyone’s money’s worth!

10. Limited Warranty

Cars covered by a manufacturer warranty are or may be subject to a limited warranty. Warranties like this will have a limited period as dictated in the agreement; duration and mileage covered by it. The items covered is that which can wear down in time. It’s interesting to note that some fees like labor for repairs can be free, but window wipers and other car components are not!

Cars covered by a manufacturer warranty are or may be subject to a limited warranty

>>> For your reference: Everything drivers need to know about car warranty.

Buying a car isn’t the easiest thing to negotiate, but these dealer terms to know when buying a new car will come in handy or those getting a new car in 2019. Familiarity with these terms will give any car buyer an edge when dealing with car salesmen. Good luck and happy hunting!

For armed is well-armed with great tips and pointers that car owners can find at Philkotse.com.