Do you know how to speak dealer-speak?
Buying a car can come with a bit of stress- after all, you’re sinking your hard-earned money into something that you want to last for a very, very long time. That’s why knowing dealer-speak – common words and terms that are often used in the auto industry and your car shopping experience – can make you feel a little more at ease. Toyota of Orlando is here to give you some of the top terms to know when it comes to buying a new car!
What terms should you know before car shopping?
Pre-qualification: This is when a loan company confirms that you are eligible for a loan, but you aren’t committing to taking it just yet. This is one of the steps you’ll take in the car shopping process before you decide to take the leap and sign on the dotted line, and Toyota of Orlando can help you with it.
APR: “Annual Percentage Rate”, or finance rate. This is the interest rate on the loan that you’re going to take out, or how much the loan company is going to charge you to use their money to pay for your ride. Always look for an APR that’s conducive to your budget – while you definitely want to consider price of the vehicle, you also want to consider how much interest you’re going to pay. Toyota of Orlando works with multiple lenders to get you competitive finance rates!
Down payment: This is the amount of money that you “put down” on a car before you loan or lease. Basically, it’s a lump sum of money that you give your lender to reduce the principal (or the amount of the loan) so your interest rates are lower and you end up paying less overall. Our Toyota of Orlando sales specialists can help you figure out how much of a down payment is right for you and your budget!
Toyota of Orlando is here to educate you!
Closed end lease: This type of lease has two possible outcomes for you, the lessee – you either buy a car at the end of your lease, or you walk away without having to pay for the loss of value of the car during the life of the lease. Remember, cars depreciate, and leasing offers you a way to avoid losing your investment. Ask about our Toyota of Orlando lease options to see what’s best for you!
Extended Warranty: This warranty will is also called a service contract and is available for lots of different types of cars. Basically, it’s a promise to cover the financial responsibilities for certain types of service and repairs after the factory warranty has ended. But buyer beware – if it’s not offered by the manufacturer, it may not be worth your money! Check out our Toyota of Orlando warranty options!
Have questions or need a term clarified? Call Toyota of Orlando today at (888) 725-3520 or swing by and see us. Our sales specialists are happy to help and we’re open seven days a week until 10pm!