What is a used car?
A used car is a car that is not new. Another person owned the car before you.
What is a Buyers Guide?
The Buyers Guide is a written document that tells you about the used car. The Buyers Guide tells you:
- if the dealer is selling the car with a warranty
- if the dealer is selling the car without a warranty, or “as is”
- what portion of the repair costs a dealer will pay under the warranty
- the major systems on the car and some problems you should look out for
- to have the car inspected by an independent mechanic before you buy
- to get all promises from the seller in writing
What is a manufacturer’s warranty?
A manufacturer is the company that made the car. A manufacturer’s warranty is a promise from that company to pay for some repairs or services. A warranty is for a specific period of time, usually a few years. You pay for the warranty in the price of the car.
What is an extended warranty or a service contract?
An extended warranty is a promise from the warranty company to pay for some repairs or services after the manufacturer’s warranty expires. An extended warranty is not included in the price of the car. It costs extra. An extended warranty is sometimes called a service contract.
What is a vehicle history report?
A vehicle history report tells you about a car or truck. It will tell you:
- who has owned the car
- the mileage
- if it has been in any accidents
What is an annual percentage rate?
The annual percentage rate tells you how much it costs you to borrow money for one year. It includes the interest rate and fees you pay the lender. It is also called the APR.
What is a down payment?
A down payment is the first payment you make when you borrow money to pay for a car. You agree to pay the rest later.