Buying a car · Guide for Delaware
The bilingual dealership glossary
Twenty-one terms you will hear at the sales desk, in English and Spanish, with the rules of Delaware, and what is behind each one.
At a dealership people talk fast and in technical English. This table lets you understand every word before you sign. If a word isn't here, ask what it means and ask them to write it down.
| Term · en español | What it means | Watch out |
|---|---|---|
| As Is Tal como está | The car is sold with no warranty at all. If it breaks leaving the lot, it is your problem. | Read the Buyers Guide: if it checks "As Is", no spoken promise counts. |
| Buyers Guide Guía del comprador | The window sticker the FTC requires on every dealer used car. It states whether there is a warranty and what it covers. | Ask for a signed copy; it is part of the contract. |
| MSRP Precio sugerido | Manufacturer's suggested retail price for a new car. Not what you pay. | Does not apply to used cars; sometimes used to make a price look like a bargain. |
| Out-the-door price Precio final | The total with everything: car, doc fee, tax, tag, title and any add-on. The only number that matters. | Get it in writing before talking financing. |
| Doc fee Tarifa de documentación | Dealer charge for preparing paperwork. The dealer processing fee has no cap in the Delaware Code as of the check date; a 2024 bill (HB 295) proposed $475, but it does not appear in current law. Do not confuse it with the state's 5.25% document fee, nor with the $2.00 handling fee the dealer owes the State (30 Del. C. § 3004), which is not a charge to you. Neither title 21 chapter 63 nor title 30 chapter 30 sets a cap, read today. The dealer must list each fee separately on the bill of sale (21 Del. C. § 6305). | It is not a tax. In practice it is often negotiable even if they say it isn't. |
| Tag / Title fees Placa y título | State fees for the plate (tag) and the certificate of title. The dealer collects them and pays the state. | Ask for the breakdown; they are sometimes rounded up. |
| Sales tax Impuesto de venta | Delaware has no sales tax. Instead it charges a 5.25% document fee (since October 1, 2025) on the price or the NADA average trade-in value, whichever is higher; minimum $8.00. It is not an exact 5.25%: § 3002(c) uses a table — $8.00 if the price is under $400, $13.75 from $400 to $500, and $5.25 more for each additional $100 or any fraction of it, rounded to the dollar — so a part of $100 is charged in full. It is paid at the DMV when titling, or to the dealer. There is no local add-on. With a trade-in you pay only on the difference; if you sell your old car privately within 60 days before or after titling the new one, you get the same credit (form MV347), but there is a deadline: if you sold after buying, the MV347 must be submitted or postmarked within 30 days of the sale date; if you sold first, no later than 30 days after titling the new one. The credit is given for only one vehicle or trailer per application, and the car you sold must be Delaware titled in the name of at least one of the people titling the new one. If the car was titled or registered in another state and you paid sales tax, transfer tax or a similar levy there within the 90 days before registering it in Delaware, you do not pay the document fee; the DMV says it enforces the 90-day rule strictly. | A private seller doesn't collect it; you pay it when you title the car. |
| APR Tasa anual | The real yearly cost of the loan, interest and fees included. Compare offers on this, not on the payment. | Arrive with a pre-approval from your bank or credit union and ask them to match it. |
| Term Plazo | Months of the loan. More months, lower payment, more interest and more time owing more than the car is worth. | Avoid more than 60 months on a used car. |
| Down payment Enganche / inicial | What you pay up front. It lowers the loan and the risk of going "upside down". | Ideal: 10–20% of the price on a used car. |
| Upside down / negative equity Al revés | You owe more on the loan than the car is worth. It happens with small down payments and long terms. | If you trade in an upside-down car, the debt rolls into the new loan. |
| GAP insurance Seguro GAP | Covers the gap between what you owe and what insurance pays if the car is a total loss. | Useful if you are upside down. Usually cheaper from your insurer than from the dealer. |
| Extended warranty / service contract Garantía extendida | A service contract covering certain repairs for a period. It is not a manufacturer warranty. | Read what it excludes and who pays the shop. Always optional. |
| Trade-in Entrega de tu auto | Your current car as part of the payment. Ask whether the state deducts the trade-in from the taxable amount. | Negotiate its value separately from the price of the car you buy. |
| Lien Gravamen | A registered debt on the car. The bank appears on the title until it is paid. | Without a lien satisfaction letter, you cannot title it in your name. |
| Title Título | The document proving ownership. In several states it is electronic and printed at transfer. | The VIN and the name must match the car and the seller. |
| Salvage / Rebuilt Salvamento / Reconstruido | Title brands for total loss and rebuild. See the Title Check guide. | Must be disclosed in writing before the sale. |
| Odometer disclosure Declaración de millaje | The seller declares the mileage when transferring the title. Federal law. | "Not actual" or "exceeds mechanical limits" lower the value. |
| CPO (Certified Pre-Owned) Usado con programa de fábrica | A manufacturer program: inspection, warranty, age and mileage limits. Costs more. | An independent dealer's own "certification" is not the same thing. |
| Dealer add-ons Extras del dealer | Pre-installed or bundled products: paint protection, nitrogen in tires, etching, alarm. | Nearly all are optional and high-margin. Ask to remove them. |
| Spot delivery Entrega inmediata | You take the car before financing is truly approved. | It is the door to the "yo-yo". Don't take it without financing closed in writing. |
| PPI (Pre-purchase inspection) Inspección pre-compra | An independent mechanic's check before you buy. Costs $100–$250. | A seller who refuses it is giving you the answer. |
Three words xCruzo does not use"Certified," "verified" and "clean" imply a certification nobody is actually giving you. When you hear them on a lot, ask: certified by whom, and what does the paper say?
From a guide to the individual vehicle
Sources
- FTC — Dealer's Guide to the Used Car Rule (Buyers Guide, As Is)
- FTC — Financing or leasing a car
- 30 Del. C. §§ 3001–3002 — Motor vehicle document fee
- 21 Del. C. chapter 63 — Dealers (§ 6305 Bill of sale)
- NHTSA — Odometer fraud
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.
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