Salesman Lingo Unleashed.

Ever wondered what the salesman was saying to you as he started rambling about the new car that was a few signatures away from being yours? Ever just nodded your head in an attempt to get him to quit talking but not really confident of what you were agreeing to? Well, here are a few things we thought would help make your car buying experience a bit breezier.



Rebate: a rebate is an amount paid by way of price reduction off of your new car (only on new cars). On TV commercials I have also seen them called "cash back," "down payment assistance," etc. They are counting highly on the fact that you will not take cash back. Who really would on a $20,000 and up purchase?

APR: this is only if you are financing. APR is Annual percentage rate. Or the amount that you'll pay the bank each year (broken into monthly payments) for taking out your loan. You will pay interest only on your remaining balance each year, so the longer you have the loan, the smaller your interest payments will be.

Upside Down: a strange adjective to describe owing more on your car than it's worth. In some cases you can take out a loan for up to 6 years to lower your payments. The less you pay each month (most likely more in the case of a new car) the more upside down you'll be. This is bad when you want to trade in your car and end up losing money on the deal to pay off your remaining balance and trade in your car. Not so bad if you keep your car forever.

Payment Calculator: It would be best to describe this with the actual payment calculator. Look Here! This helps you determine your monthly payment based on your down payment, loan term and price of overall vehicle. You can even factor in your trade-in.

Doc Fee: This fee is typically added to your vehicle price along with sales tax and registration. Most dealerships charge anywhere from $150 to $495 while Eckert only charges $50. At Eckert, we are up front about adds and pricing and we respect you, your pocketbook and your time. These get a bad reputation in the car-buyers mind. Well sure, when you've been taken advantage of by dealer after dealer charging upwards of $500 for a paper shuffle?

Tax, Title, License & Registration Fees: Texas state tax is 8.25% we collect this amount and later pay it to the state. This amount is charged on the difference of your new car after the trade in amount, and after the rebate is taken out. We tax you on the smallest amount possible. We also collect $110.30 on cars for title work, license and registration, which is later collected by the state. If you are buying a used car with a current registration sticker you can opt not to have it renewed (which saves you a trip to the tax office) and reduce your $110.30 about $50. Your choice.

VIT Tax: Vehicle Inventory Tax charged on all new and used cars which is imposed by our county. It is currently 0.2% of your sales price (minus rebate, if you have one). It is usually under $100.

Inspection Fee: This is a mandated $23.75 for new cars. And $39.75 if your car is used and the inspection is expired. If not expired, no charge.

Ah, that's better. Now that your confidence is restored. Take a deep breath and check out some inventory. You know you want to....