Bumper-to-Bumper warranty / new car warranty - comprehensive coverage from the vehicle manufacturer on a new vehicle that covers every component of the vehicle other than “wear items” (breaks, tires). The manufacturer guarantees the function of the vehicle for a specific amount of time and/or miles, whichever comes first. Any component that fails is replaced by a licensed dealer at no cost as long as the component didn’t fail due to negligence by the consumer.
Complimentary maintenance - scheduled maintenance that is included by the manufacturer with the sale of a new vehicle. Pro tip: When this is included by the manufacturer it is free but when it is offered by a specific dealer than it is baked into the cost of the vehicle.
Dealer conveyance fee - a fee charged by the dealership to process the paperwork when selling a vehicle (also known as Doc Fee or Dealer Processing Fee).
Dealer prep fee - in addition to the dealer conveyance fee, some dealers charge a fee for “preparing the vehicle for sale” (detailing the vehicle, mechanical inspections, etc.)
DMV registration - every new vehicle must be registered with the state to be legal to drive. There is a cost associated with registering a vehicle.
Invoice - the amount the dealership paid the manufacturer for a new vehicle.
Lemon law - when a new vehicle continues to have the same problem that is determined to be a manufacturer’s defect and the manufacturer is required to either buy back, replace the vehicle, or compensate the buyer. Lemon Law qualifications and compensation vary state to state.
Market adjustment - the additional cost over MSRP when a dealership charges an amount for a vehicle that is over the MSRP amount.
MSRP / list price - acronym for “manufacturer’s suggest retail price” This is the price of the vehicle before applying any discounts.
Perforation warranty - a warranty specifically for rust that extends beyond the time and/or mileage of the bumper-to-bumper warranty.
Powertrain warranty - a warranty is specifically on the engine and transmission of a new vehicle that extends beyond the time and/or mileage of the bumper-to-bumper warranty. Sometimes this will also include 4 wheel drive systems if applicable.
Property tax - a tax charged annually or semi annually to a consumer based on their individual state, county or town based on the value of the vehicle registered in the state by that consumer.
Sales tax - tax paid to the state where the vehicle is being registered when buying or leasing a vehicle. This is calculated differently depending on the state and how the vehicle is being acquired.
Trade In - when a consumer is replacing a vehicle and sells said vehicle to the dealership where they purchase or lease the new vehicle.