Buying a Car Terms

sum of costs in order to purchase, operate, and maintain a vehicle

• lease

• downpayment

• total cost of ownership (TCO)

• seller

a car that is unsatisfactory or has defects. a buyer often does not know about the defects.

• trim

• lemon

• horsepower

• warranty

different versions of the same car that include or do not include specific features

• total cost of ownership (TCO)

• insurance

• trim

• warranty

the power the engine makes is compared to the power of a horse. the more power, the faster your car can accelerate or the heavier the weight it can carry.

• horsepower

• trade-in

• lemon

• MSRP

if you are willing to give your car to the dealer in exchange for a new car, you can often get a better price

• lease

• VIN

• warranty

• trade-in

manufacturer's suggested retail price. price that car builders say the car should be sold at.

• downpayment

• MSRP

• MPG

• total cost of ownership (TCO)

a long term rental of a car. you need to pay monthly payments for the vehicle and it must be returned at the end of the contract.

• seller

• lemon

• lease

• downpayment

most people cannot afford to pay for a new car in one day. you pay the cost over time, but sellers require a certain amount of money the day you buy it.

• downpayment

• VIN

• insurance

• seller

the person/company that is selling the car. this could be a person or a dealership.

• seller

• total cost of ownership (TCO)

• MPG

• warranty

miles per gallon - the amount of miles (distance) a car can drive on one gallon of gasoline or fuel

• MPG

• warranty

• trade-in

• MSRP