LEARN THE LINGO:
Auto Buying & Financing Terms
Throughout your journey to becoming a car owner, you may encounter some words and acronyms that you aren't familiar with.
Review the terms below so you can speak to dealers and lenders with confidence.
Annual Percentage Rate: Commonly abbreviated
as APR, this is the interest rate on a loan. It is also
sometimes referred to as a finance rate.
Dealer Incentives: These are special o•ers designed
to encourage consumers to purchase a vehicle. Common
incentives include cash rebates and low APR financing.
Down Payment: This is the portion of money that
you pay up front for a vehicle purchase.
Monroney Sticker: The price tag sticker found on
the windows of new cars, this document lists vehicle
information such as the base price, standard features, etc.
MSRP: This acronym stands for Manufacturer's
Suggested Retail Price. It is the amount that is listed as
the base price on vehicles' Monroney stickers.
Rebate: Designed to increase new-vehicle sales,
rebates may be o•ered in the form of a price reduction
or as a refund by mail upon completion of the sale.
Term: This refers to a loan's length of time.
VIN: A VIN (vehicle identification number) is a unique,
17-character code that identifies each specific motor
vehicle in the United States.
