Welcome to Car Buying 101 F.A.Q.
Our goal is to provide you with insight into the entire car buying experience. That's why we've included a list of common terms you may hear during you car purchase. That way, you know what's going on. And we're here to help you every step of the way!
If you have any questions or concerns during your purchase, just let us know!
Glossary of Terms
A.P.R. - The interest rate that is charged by the bank for the loan. Interest rates offered by the banks change daily, but we will get you the best rate because we have banks across the nation competing for our business.
Credit Life - Pays off your vehicle in the event you die, so your spouse doesn't lose the vehicle or your estate is is left with the debt.
Disability Insurance - Insurance that will make your car payments if you're sick or hurt and cannot work.
Empirical Score - The score from the credit bureau services (Trans Union, Equifax, TRW). It is a list of all your credit accounts and your payment history. The combination makes up your score. We have banks for every situation and every need.
Extended Warranty - A warranty on your vehicle that covers you after the factory warranty is over.
Gap Insurance - Insurance that pays the negative difference (gap) from what you owe, and what your insurance agency is going to pay, so you don't have to pay the difference yourself.
Inception - The fees due at time of delivery. (For example, the fees may include your first payment and security deposit.)
Leasing - Basically this is like renting a vehicle from the bank for a period of time and miles. When your time is up, you return the vehicle back to the bank, or buy it for it's residual value.
Negative Equity - Also known as 'Buried' or 'Upside Down'. This is when you owe more on your loan than the car is worth. No Problem! Most banks will finance negative equity.
Residual Value - The value of the vehicle at the end of a lease contract.
Term - The length of time to pay off the contract (the purchase or lease).
Tier - Using your credit score, the bank will finance you a certain amount at a certain rate.