What Does That Mean Again? – Buying Edition
Finally ready to hang up the boots on your 2000s sedan with over 200,000 miles? Maybe you’re just in the market for an upgrade? Or maybe you’re done with making compromises and you’re finally ready to build your dream car? Whatever it is, when you’re ready to invest in your new ride, Mungenast St. Louis Honda is ready to help you through every step of the way. Investing in a vehicle is something that should not be taken lightly, so we’ve done our research to help you prepare for it! At this point, you may have already read our past blog post, Pros & Cons of Buying vs. Leasing a Vehicle & decided that this is it, you’re ready to buy and invest in your vehicle. (If you’re not quite ready for that leap, refer to our last blog post, What Does That Mean Again? – Leasing Edition to learn more about leasing a vehicle). However, if you’re like many of us who held onto our vehicles maybe a little too long, you may not remember the first thing when it comes to buying a vehicle, and you’re guessing things may have changed. And quite frankly, you’re right, the car-buying experience has changed in the last couple decades, but in the best way possible.
If you’re reading this blog post, you probably know what we’re talking about: technology. It’s no secret that in the last couple decades, technology has evolved more than ever, and just about everything has the ability to be digitized by now, including your car-buying experience. Although the pandemic has affected the automotive industry in many ways, it has also helped speed things along in many other ways. Instead of spending hours or sometimes even days hopping from dealership to dealership looking for the best deal, you have everything you need right at your fingertips. And the Mungenast St. Louis Honda dealership has kept up with the times by creating an easy and efficient website for our customers to navigate. If you’re ready to invest in your own vehicle, but not ready to break the bank, check out our large selection of Used Vehicles, including Certified Pre-Owned Vehicles. Maybe you’re ready to buy new but know there has been a new vehicle shortage thanks to the pandemic? Luckily for you, while other dealerships may be struggling with inventory, we still have plenty of New Vehicles in stock as well. In fact, at the moment we have even more new vehicles than used vehicles! However, if you’re not seeing what you’re looking for, we saved the best option for last.
If you’re finally ready to invest in your dream car, use the Vehicle Configurator right on the Mungenast St. Louis Honda website, and create your own custom Honda with everything you want and nothing you don’t want!
- First: Select the Model you want to customize.
- Second: Select the Trim. Different trims can cost extra so make sure to be checking the prices of each trim as you’re shopping.
- Third: Select the Powertrain. Certain vehicles will give you different options of All Wheel Drive, Front Wheel Drive, etc.
- Fourth: Select the color. Most vehicles will give you the option to customize the exterior and interior color. Again, be checking the prices of different colors/materials as some include upcharges.
- Fifth: Review the Summary. If your vehicle looks to be everything you’ve ever wanted and more, you have the option to Request a Quote, Schedule an Appointment, or Search Current Inventory.
Now that you have an idea of what kind of vehicle you would like including the model, year, condition, etc., it may be a good idea to refresh on some of the basics of buying a vehicle. When it comes to car-buying terms, not much has changed, but it’s always best to know the language before walking into the whole new world of car dealerships. Whether you’re a first-time car buyer or a long-time car-buyer who hasn’t stepped foot in a car dealership for years, learn more about the basic car terms you may encounter:
- Annual Percentage Rate (APR): also known as the financing costs, the annual interest rate charged by a lender. Whether you Apply For Financing through Mungenast St. Louis Honda, or go elsewhere, there will be an APR charged in order for you to borrow that money.
- Net Capitalized Cost: the total amount being borrowed for the loan.
- Cap Cost Reduction: anything that lessens the loan amount. This could include any manufacturer or dealership rebates, a trade-in allowance, a down payment, etc.
- Destination and Delivery Charge: a fee charged by the manufacturer to the dealership to deliver the vehicle from the factory to the dealer. This fee is found on the Monroney (window sticker).
- Down Payment: the amount of money put down up-front when you first finance your vehicle. That can be used to lower monthly payments.
- Extended Warranty: a warranty offered by the dealer for added coverage when the factory warranty ends. Extended warranties are most commonly used when buying used or Certified Pre-Owned vehicles as the car, age, mileage, & general state of the vehicle can differ. No, that is probably not us calling you about your extended car warranty, that is most likely a scam!
- Gap Insurance or Protection: covers the difference between a vehicle’s depreciated value and the amount still owed to a lender if something happens to your vehicle. This is usually a good idea to get since you may end up paying the difference to a lender out of pocket without it.
- Incentive Rate: a special interest rate offered to those whose credit qualifies.
- MSRP or Manufacturer’s Suggested Retail Price: the suggested price of a vehicle usually found on the Monroney (window sticker). This usually does not include other fees like destination charges, optional equipment, taxes, etc.
- Principal: total amount of money borrowed to finance a vehicle.
- Rebate or Factory Incentive: sometimes called commercial incentives, a bonus offered by manufacturers to customers in the form of rebates, cash back, or a lower interest rate.
- Title: the legal, government-issued document that shows proof of ownership of a specific vehicle.
- Vehicle Identification Number or VIN: an identification number that is unique to each vehicle. This 17-digit number includes codes for year, make, body style, and engine. You can find the VIN under the windshield or along the door jambs of a vehicle.
- Wholesale Value: how much a dealer pays a manufacturer or another dealer for a vehicle. The condition age, and mileage affect this value.
Feeling better prepared to find your next vehicle? As always, you can Contact the team at Mungenast St. Louis Honda with any questions! We want nothing more than for our customers to be happy with their decision for years to come, and we are dedicated to being there for our customers for every step of the way. Whether you’re ready to buy used, new, or build your own custom Honda, our goal is to find the right vehicle and financing terms for YOU.