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Car Buying Terms You Need to Know
Here’s the real stuff. (Sort of)
Buying a car may not be the traumatic experience it has been in years gone by, but the experience can still rival getting a root canal. In years gone by, going onto a carlot and trying to escape without buying a car was like escaping the Mafia. If you somehow managed to escape, you were still subject to numerous phone calls and other forms of harassment.
Over the years, I pretty well gave up on getting a good deal. If I came out still wearing my shirt and managed to go through the negotiating process without going into the fetal position during the process, I considered it a success. One thing that might help is knowing the terminology of car sales. And here we go.
Balloon Payment: You probably think that’s a large payment you make at the end of a car loan. Fortunately, you have me to set you straight. A balloon payment is an amount added to your bill to cover the cost of all those balloons you see all over a car lot. Balloons can surprisingly expensive.
Bump: This may refer to what the used car you’re looking at has been driven over, but generally, it refers to something else. Mostly, it refers to the difference between what the car dealer being is charged for a loan, and what the dealer is charging the customer. Bump sounds better than juice.
