Essential terms to understand before buying a used car

The glossary of common terms within used car industry is important to take into consideration. Without basic and certain terms understanding, people cannot end choosing the right choice. It needs certain people selection within basic terms. The glossary of terms found within used cars is

  • Administration fees – This is the charge made by dealer. It is charges to cover up the office cost that are associated with vehicle selling. Few dealers choose this and few include it with the sale price. So, administration fees are the charge made by dealer and it varies based on each seller.
  • Bait and switch – This is the advertisement made for a model and switch the customer to higher end model to make huge sell of used car.
  • Bond or bonded – Bond is the process that is ensured by most of the company to its employees. This is the term used to tell buyer about the company sound finance and stability.
  • Certified used car – When the used car is certified for the dealership, verification is performed over the mechanics to ensure about the supplemental warranty.
  • Cooling off – The period after purchasing till a particular return period is denoted with this term.
    • Contract – The legal binding of agreement within parties is denoted through this term.
    • Curbsiders – These people pose as the private individual to sell a car between two parties. They are also denoted as brokers.
    • Dealer – The personnel involved in selling process of cars are named as dealers.
    • Department of transportation – The government agencies that handles most of the vehicle documents, licenses, and everything related to vehicle.
    • Deposit – Money paid to hold the selling vehicle. This is also considered as the complete financing security benefit.
    • Extended warranty – The warranty given beyond the manufacturer period of warranty.
    • Inspection – The physical verification of cars before buying and proceeding with any kind of deal.
    • Latent defect – The fault that cannot be found while inspecting and in question before sale. This term is also referred to as material defect.
    • Legal obligation – The requirement that is taken into action along with penalty is referred as legal obligations.
    • Lien – This option is put on to the financial institution that lends money towards car buyer.
    • Low-ball – The process of offering seller an amount which is lower in the price check.
    • Market value – The value assigned to car based in the current market condition.
    • Ownership cost – The cost to own a vehicle and it majorly includes condition, mileage, demand, etc.
    • Power of attorney – Authorization to sell the used cars in Raleigh. Usually it is given to dealer from seller side.

 

  • Rebuilt/salvaged – The title given to the damaged and returned vehicle during operational period.

 

 

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