Jargon Used in the Used Cars Industry

Going to a car dealership or conversing with a dealer can become confusing and daunting pretty quickly if you do not know the terms, language, acronyms, and slang used in the industry. I am a car dealer who is well aware of all the current terminologies of the industry. My list will help you whether you are buying auto salvage cars from salvage vehicle auctions or clean title cars from an auto dealership.

Residual Value

Over 1, 2, or 3-years periods, a car has good or bad residuals. It is the value of a car after deducting its depreciation.

Pre-Reg

In order to get bonuses from the manufacturers and meet sales targets, some dealers buy pre-registered cars and have their names written on the V5C registration document as first-keepers.

Lemon

The term is used for major auto salvage cars and the ones with manufacturing problems or other damages and issues.

Part Exchange

If you buy a car and partly pay it with your old car, the bought car is called part exchange.

Cooling-Off

After purchasing a vehicle, a cooling-off time period allows the purchaser to return the car and cancel the deal without a penalty. It is not applicable in all states and the period differs in those where it is.

Latent or Material Defect

If an issue, defect, or problem in a vehicle is unlikely to be discovered in a general or reasonable pre-sale inspection, the defect is called latent or material. A trustworthy dealer who conducts salvage vehicle auctions will inform you about such defects beforehand and price the car accordingly.

Write-Off

A vehicle is deemed as a write-off or total loss when its value is lower than its repair cost. The authorities title it as a write-off but dealers or individuals can repair or rebuild it to make it fit for operation again.

Such auto salvage cars can be found in salvage vehicle auctions at surprisingly low prices. People buy them for personal use as well as for re-selling them for profit.

<< Back