What terms should I know when buying a new car?
On the face of things, buying a new car or crossover SUV should be fairly straightforward. A vehicle costs X-amount, a buyer gives the dealer that much money and everyone is happy. Unfortunately, that’s not the reality we’re working with. The automotive industry is filled with confusing or scary sounding words that don’t appear anywhere else in life. Matt Castrucci Honda wants to make the process of buying a vehicle as easy as possible. Here are some terms you should know when buying a new car, hopefully, this will help you make the best possible decision. If you have any questions along the way, please reach out to one of our sales professionals. They are ready to solve any problems you might have or take care of any concerns that pop up along the way.
Annual Percentage Rate — This is the amount of interest a lender will charge for a loan each year. It can also be referred to as ‘financing rate’ and can be majorly affected by a customer’s credit score.
Closed-end lease — The most common type of lease offered to customers. When the lease is over, the customer can choose to buy the vehicle or turn it into the dealership and start a new one. Sometimes called a walk-away lease.
Gap insurance — A type of car insurance plan that covers the cost of a leased vehicle in case it is stolen or completely destroyed in a car accident. It is very important for lease customers to know if they have this kind of coverage.
Infotainment system — A comprehensive set of technologies that generally encompasses features like the radio/stereo, embedded GPS navigation capability and any kind of outside device (smartphone) integration.
Hybrid — These types of vehicles often use both a gasoline-powered engine and some type of electric motor to help with fuel efficiency. Some vehicles use a plug-in system and are still referred to as hybrids or possibly electric vehicles (EVs).
If there are any terms you don’t see here that you are curious about, please give the Matt Castrucci Honda showroom a call today.