Car Buying Terms Instant

: What the dealer paid the manufacturer for the car. Knowing this helps you understand the dealer's profit margin and how much room you have to negotiate.

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

: 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 : What the dealer paid the manufacturer for the car

: The upfront cash you pay to reduce the amount you need to borrow. Most experts recommend aiming for about 20% of the sale price. car buying terms