Car Buying Terms Direct

: The amount the dealer offers for your current car to put toward your new one. Check values on sites like Kelley Blue Book before you go.

Walking into a dealership can feel like entering a room where everyone is speaking a different language. To help you feel confident and in control, we’ve defined the most common terms you’ll encounter during your car-buying journey. car buying terms

If you aren't paying cash, these terms will determine your long-term costs. : The amount the dealer offers for your

: Covers the "gap" between what you owe and what insurance pays if your car is totaled while you have negative equity. To help you feel confident and in control,

: What the dealer paid the manufacturer for the car. Knowing this helps you understand the dealer's profit margin and how much room you have to negotiate.

: When you owe more on your loan than the car is actually worth. This often happens with long-term loans or small down payments.

: The upfront cash you pay to reduce the amount you need to borrow. Most experts recommend aiming for about 20% of the sale price.