Car Buying Terms and Definitions

Front

Part-exchange → “He did a part-exchange and traded in his old car for the new model.”

Back

When you trade in your old car as part of the payment for a new one.

Front

Deposit → “He paid a deposit to secure the car while the paperwork was prepared.”

Back

Upfront money you pay to secure the deal.

Front

Balance / outstanding balance → “After the part-exchange, he still had an outstanding balance of £5,000.”

Back

The remaining amount to be paid.

Front

Finance deal → “He opted for a finance deal to pay the car in monthly instalments.”

Back

An arrangement where you pay in instalments, often with interest.

Front

Cashback incentive → “The dealership offered a cashback incentive to cover his MOT fees.”

Back

When the dealer refunds a sum of money after purchase.

Front

Add-ons / perks / extras → “The dealer threw in several extras, including free servicing for a year.”

Back

Additional benefits such as free servicing, warranty extensions, insurance cover, or MOT vouchers.

Front

On the road costs → “He had to factor in the on-the-road costs like registration and tax.”

Back

Fees that make the car road-legal (registration, tax, MOT).

Front

Sticker price / list price → “The sticker price of the car was £40,000 before any negotiations.”

Back

The official retail price of the car.

Front

Haggling / bargaining → “We managed to haggle a bit and got a grand off.”

Back

Negotiating to get a better price.

Front

Trade in → “He traded in his old car for the new model.”

Back

Exchange your current car as part of the payment for a new one.