Vehicle Jargon: What does THAT mean? – Part I
When buying a car, there are a lot of things to think about like overall cost, financing options, and insurance. Unfamiliar terminology can add to the confusion and make the experience more stressful. When making such a big investment, it's important to know what everything means. The following is a list of vehicle jargon that can help prepare you for your purchase.
City MPG/Highway MPG: City MPG is the miles per gallon you get while driving in a city environment at a slower pace, with stop and go traffic; while Highway MPG is the miles per gallon you get when traveling on the road at higher speeds, for a longer period of time.
Down Payment: The upfront portion of the total amount due, that is usually paid in cash when you finalize the transaction. A large down payment can reduce the cost of your monthly payments, lower the interest rate, or shorten the length of the term. A down payment of 10% to 20% is typically recommended when buying a previously owned vehicle.
Extended Warranty: An agreement to cover certain services and repairs after the manufacturer's warranty has expired. The exclusive AAA plan offers four coverage levels, each customized to your exact driving habits and, depending on the coverage you choose, may cover all major repairs for up to 7 years and 230,000 odometer miles.
Horsepower: A measurement of work done over a period of time. The more horsepower a car has, the faster it will be. To measure power, a car's engine gets hooked up to a dynamometer. A dynamometer places a load on the engine and measures the amount of power that the engine can produce against the load.
Powertrain: The main components in a car that generate power and deliver it to the road. In modern vehicles, it's comprised of the engine with exhaust system, transmission, drive shaft, suspension, and the wheels.
MSRP: Also known as the list price, the acronym for Manufacturer Suggested Retail Price is the selling price the manufacturer recommends for the vehicle. MSRP is used for marketing and comparison shopping by consumers.
If you are in the market for a new or used vehicle, the experts at AAA Auto Buying can walk you through the process. We can help you find the right car at the right price and will be happy to answer all your questions. Call 1-866-710-6226 or visit AAA Auto Buying online for more information.