Car Dealership Terminology You Should Know in Mitchell, Ontario
Buying a car requires you to do your research and have your facts straight before you head to the dealership. You especially need to know the common car buying terms and be ready to ask common questions to ensure that you get the best car for your budget. At Perth County Chrysler, we aim to make the car buying process as straightforward and informative as possible to ensure you're empowered to make the right decisions. As the leading Chrysler, Dodge, Jeep and Ram dealership in Mitchell, we also serve surrounding areas including Goderich, Exeter, Listowel, New Hamburg and other areas in Ontario. Start your research now by checking out our new and used inventory on our website today or feel free to visit us in person to test drive any of our vehicles.
Common Car Buying Terms
When you want to get the best deal for your dollar, you need to be aware of some of the common car buying terms. Common dealer terminology includes words like:
- Acquisition fee - commonly used when you lease or finance a vehicle to originate the car loan
- Balloon payment or balloon loan - ideal for customers who have a predictable future income, a balloon loan structures your payment differently so you pay a larger lump sum at the end of the term
- As-is - vehicles sold under a contract that is not represented as being in a roadworthy condition or certified in accordance with provincial guidelines or guaranteed for any level of quality
- Downpayment - this is a lump sum of money to be paid to the dealership for the finance of a vehicle to reduce the capital and monthly installments on a fixed term loan. This may also be referred to as a "capitalized cost"
- Walk-away or Close-ended lease - this is a contractual lease agreement that places no obligation on the lessee (person leasing the vehicle) to purchase the vehicle at the end of the lease term
- Dealer charges - also referred to as documentation fees or registration fees, these are fees applicable to a vehicle at the time of sale to process the vehicle sale
- Market value - the monetary appraisal of your trade-in vehicle's condition in the current market
- Optional equipment - additional accessories that can be purchased to customize your vehicle
- Pre-qualify - the creditor has performed a basic review of your credit application and has deemed that you are creditworthy and can qualify for an auto loan
- Factory, manufacturer or OEM incentive - these are weekly, monthly, quarterly, or yearly offers and promotions from the manufacturure that are passed on to the consumer to help you save more on your next vehicle purchase
These terms are just a few that can arise during the car buying process. By understanding them, you can use them to your advantage and help us lead you to the best car for you and your family today.
Frequently Asked Questions When Buying a Car
Can You Buy a New Car While You Still owe Money on Another One?
Depending on factors including your budget and creditworthiness, you can buy a new car while financing another car in Mitchell, Ontario. We may extend another loan to you as long as you have finances and income to cover the monthly payments on both loans.
Can You Buy a Car after the Lease is Finished?
Yes, in fact, car leases generally tell you how much that you must pay at its end to buy the car outright. You know when you sign it what the final purchase price will be.