Automotive Terms and Definitions

Front

Auto Dealership

Back

A business that sells new or used cars

Front

Auto Lease

Back

An agreement where an individual makes monthly payments to use a car for a certain length of time instead of purchasing the car

Front

Bumper-to-Bumper Warranty

Back

A comprehensive plan that covers most car parts, with a few exceptions, for a limited period of time

Front

"Buy-Here, Pay-Here" Financing

Back

An auto loan that is financed by the dealership you are getting the car from

Front

Captive Finance Company

Back

A financing division of the dealership you are getting the car from that can offer you an auto loan

Front

Certified Pre-owned Car

Back

A used car that has been inspected, refurbished, certified and warranted by the original manufacturer

Front

Dealer-Arranged Financing

Back

A type of auto loan where the dealership connects you with a lending institution (bank, credit union, etc.)

Front

Depreciation

Back

A decrease or loss in value

Front

Extended Warranty

Back

A service contract that provides vehicle repair at no or low cost, after the manufacturer warranty expires

Front

Financing

Back

To buy an item with credit and pay it back over time with interest