Here are some common finance terms you should know to make your car buying process a little bit easier.
Black Book. Data collected from wholesale car auctions used to determine the value of a car.
Blue Book. Similar to Black Book, this is the value of a car as determined by Kelley Blue Book.
Cosigner. An additional party who assumes equal responsibility for a loan. This is often a parent or spouse.
Credit. A term used to indicate your ability to repay a debt, based on your credit history.
Depreciation. A car’s gradual decline in value over time due to wear and tear.
Lien. Legal ownership of a vehicle by a finance company until the auto loan has been paid in full.
MSRP. Manufacturer’s Suggested Retail Price. This is the price the manufacturer recommends a dealership set for a new car.
Pink Slip. This refers to a vehicle’s title or certification.