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System - This system uses no carburetor; it sprays fuels either directly into the cylinders or into the intake manifold just ahead of the cylinders, and a sensing device ensures that the correct amount of fuel is delivered into the combustion chamber.

Independent Suspension - A vehicle can have IFS (Independent Front Suspension) for the front wheels, IRS (Independent Rear Suspension) for the rear wheels, or totally Independent Suspension, which means that each wheel can move up and down without affecting any other wheel.

Integrated Child Safety Seat - This is a factory fold-down child safety seat located in the center of the rear seat. It includes seat belts, but it is difficult to adjust and not as comfortable as aftermarket safety seats. Some vehicles come with Integrated Child Seats which are rear seats that can be converted into a child seat.

Rack and Pinion Steering - In this type of steering, a pinion gear rotates with the steering shaft, moving the rack from side to side. Because there are so few parts in the steering linkage, rack and pinion steering is very precise and responsive.

FINANCE TERMINOLOGY:

Actual Cash Value (ACV) - When buying a used car, this amount tells you what the dealer has in the car, including any repairs.

Closed-End Lease - Most leases are closed-end leases, wherein a fixed residual value is stated at the time of signing, and if the value of the car has decreased when the lease is over, the Lessee is not responsible for paying the difference to the Lessor.

Down Payment - The down payment can be made in cash, trade-in of your current vehicle, or dealer discounts/rebates.

End-of-Lease Purchase Price - If there is a purchase option in the lease agreement, this will be the purchase price at the end of the lease (the stated residual value of the vehicle) that was agreed upon by the buyer and seller when the lease agreement was signed.

Extended Warranty - Your new vehicle will usually come with a warranty (e.g. 3 years/36,000 miles), but you can extend it by purchasing an optional extended warranty.

GAP Insurance - This optional insurance is usually offered at the same time an extended warranty is offered. Basically, it covers the "gap" between what insurance will pay if your car is totaled and what you still owe for the car.

Lessee/Lessor on a Lease Agreement - The Lessee is the person who wants to lease the vehicle and the Lessor is the entity who owns the vehicle you want to lease.

Open-End Lease - With this type of lease, there is still a residual value set at the time of signing; however, if the vehicle is not worth the residual value at the time the Lessee returns it to the dealer, the Lessee is responsible for paying any difference in value.

Sticker Price - This is the manufacturer's suggested retail price (MSRP), which is affixed to the vehicle and can be negotiated.

TT&L - This is an acronym for tax (sales tax), tag and license, which you will have to pay at time of signing. In some instances, you may be able to include this in your financing.

Upside Down or Lopsided Trade - If you are using a trade-in as your down payment and you owe more to the bank than your car is worth, the dealer will either increase the purchase price of the new car or ask for an additional cash down payment.

The foregoing is only a short list of automotive and financing terms, but I hope I have provided you with some basic information to assist you before you sign on the dotted line.

Learn more about this author, Sharon Lea Hill.
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