Our fifth AutoTrader glossary of automotive terms involves common phrases associated with selling your car, as requested, by you, our valued marketplace users!
Related: How does AutoTrader's Instant Offer work?
A
Appraisal: An evaluation of your car's worth by a professional or an online tool.
Auction: A sale where potential buyers bid on your car, with the highest bidder winning the sale.
B
Bill of Sale: A legal document that records the sale of your car, including the purchase price and buyer/seller information.
Book Value: A standardised guide that provides an estimate of a car's value based on factors such as its age, condition, and mileage.
C
Car Title: A legal document that proves ownership of the car.
Cash for cars: A service where you can sell your car quickly for cash, usually at a lower price than if you sold it privately.
Certified Pre-Owned: A used car that has been inspected, refurbished, and certified by the manufacturer, offering additional peace of mind to buyers.
Clean title: A car title that indicates the car has not been involved in any major accidents or suffered any serious damage.
Consignment: A service where a dealership sells your car on your behalf, taking a commission for their services.
D
Dealer trade-in: A process where you trade in your car to a dealership and use its value towards the purchase of a new car.
Depreciation: The decrease in value of your car over time.
Detailing: The process of cleaning and restoring your car to its original condition, improving its resale value.
Down payment: The amount of money paid upfront towards the purchase of a car.
F
Fair market value: The estimated value of your car based on what similar cars are currently selling for in your area.
Financing: The process of borrowing money to purchase a car, often with interest charges.
Free and Clear: A car that is fully paid off and has no outstanding loans or liens.
G
GAP Insurance: Insurance that covers the difference between the value of your car and the amount you owe on your car loan if your car is totalled or stolen.
I
Inspection: A thorough check of your car's condition to identify any potential issues before selling it.
L
Lien: A legal claim against your car by a lender, indicating that the car is being used as collateral for a loan.
Loan balance: The amount of money that is still owed on a car loan.
Loan payoff: The amount of money required to fully pay off a car loan.
M
Market value: The amount of money that your car is worth in the current market, based on factors such as supply and demand.
Mileage: The number of miles your car has been driven, affecting its resale value.
P
Private sale: A sale of your car to an individual, rather than a dealership.
R
Refinance: The process of replacing an existing car loan with a new loan, often with better terms or a lower interest rate.
Resale value: The estimated value of your car when you sell it in the future.
S
Service history: A record of all maintenance and repairs performed on your car, indicating its overall condition and value.
T
Title transfer: The process of transferring ownership of your car to the buyer.
Trade-in value: The amount of money offered by a dealership to buy your car and apply its value towards the purchase of a new car. You can value your car by using our tool here. You can read more here: Selling privately or trading in your car: Which one will get you more?
U
Upside-down: When the amount owed on a car loan exceeds the car's current value.
V
Vehicle Identification Number (VIN): A unique code assigned to each car.
