**Full Disclosure: This is a sponsored post which also contains affiliate links. All opinions are my own.
Do you know what an acquisition fee is? How about an extended warranty? If you have ever walked into a car dealership before, you may have thought the salesmen were talking in foreign tongue! Here are some car buying and car leasing terms you should know.
Acquisition Fee – An acquisition fee is charged by car dealerships to arrange a car lease. This fee usually includes costs like credit report access and insurance verification.
APR – APR stands for Annual Percentage Rate. It is the annual interest that is on a loan, charged by a lender.
Balloon Payment – A balloon payment is the lump sum payment that is added on to the end of a loan. A balloon payment usually results in a lower interest rate and a lower monthly payment.
Buyout Price – The buyout price is the amount of money that is needed to purchase a vehicle at the end of a lease agreement.
Dealer Invoice – A dealer invoice is the amount of money that a vehicle manufacturer charges a car dealership for a vehicle.
Down Payment – A down payment is a cash payment, that is made upfront by a vehicle buyer. The goal of making a down payment is to reduce the amount of money that a buyer needs to finance. Usually, the larger the down payment, the lower the monthly payment will be.
Early Termination Fees – Early termination fees are charged in the event that a car buyer ends their lease or their loan, before the scheduled end date.
Extended Warranty – An extended warranty is a service contract that is designed to cover specific repairs and services on a vehicle, after the factory warranty has expired.
Make – The make of a vehicle is its actual brand, like Dodge, Ford, Honda, Nissan and Toyota. Many times, the make of a vehicle is the same as the manufacturer of a vehicle.
Model – The model of a vehicle is the specific name of a vehicle, such as (Dodge) Charger, (Ford) Focus, (Honda) Accord, (Nissan) Rogue and (Toyota) Tacoma.
MSRP – MSRP stands for Manufacturers Suggested Retail Price. It is the vehicle base price and vehicle options that are listed on the window stickers of all vehicles.
VIN – VIN stands for Vehicle Identification Number. It is a 17-digit number that specifically identifies individual vehicles.
Head over to Sunset Kia of Auburn to find an great new car!
Leave a Reply