Buying a Car Terms

the most popular form of automobile lease; often called a walk-away lease, because at the end of its term the lessee simply turns in the car

• open-end lease

• simple lease

• closed-end lease

• carry out lease

an initial payment made when something is bought on credit.

• down payment

• processing fee

• lease payment

• drive off payment

covers the difference between what you owe on a car and what the insurance company says it is worth

• your parents

• lease insurance

• auto insurance

• gap insurance

Commonly referred to as the pink slip (even if it's actually a different color), the title is the vehicle's proof of ownership issued by the state's Department of Motor Vehicles.

• title

• registration

• owner slip

• proof of insurance

A guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models and types.

• Dealer book

• Blue Book

• Price Book

• Black Book

These are usually cash-back rebate offers or low loan interest rates from the automaker straight to the consumer.

• Buyer Incentives

• Factory Incentives

• Purchase Incentives

• Sales incentives

making payments on a car for a specific amount of time and then returning the car to the dealer. It's basically renting a car.

• limited payments

• car rental

• lease

• quick sale

manufacturer's suggested retail price

• ASAP

• MSRP

• NAACP

• PVC

a number assigned to a person that indicates to lenders their capacity to repay a loan.

• credit history

• credit application

• credit profile

• credit score

payment to cover the cost of setting up a lease. often includes a security deposit that may be refunded at end of lease

• lease fee

• down payment

• facility fee

• acquisition fee