Buying a car · Guide for Tennessee
The bilingual dealership glossary
Twenty-one terms you will hear at the sales desk, in English and Spanish, with the rules of Tennessee, 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. We did not find a legal cap on the dealer documentation fee in an official Tennessee source. Ask for the amount in writing before you negotiate and compare it across dealers; if a dealer misleads you about charges, you can complain to the Tennessee Motor Vehicle Commission. | 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 | 7% state on the full price, plus local tax (2.75% maximum) on the first $1,600 only, plus an extra 2.75% state tax on the portion between $1,600.01 and $3,200, which never exceeds $44. In a private sale you pay it at the County Clerk when you title the car. On a trade-in only the difference is taxed: the car you hand over has to be of like kind and show up as a "trade-in" with model and serial number on the invoice. If you move in with a car you already paid sales tax on in another state, it is credited with proof of payment. Gifts and transfers between close relatives are exempt with affidavit F-1301201. Note: the dealer documentation fee is taxed too, because the state counts it inside the sales price. | 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
- Tennessee Department of Revenue — County Clerk Sales and Use Tax Manual (June 2025)
- Tennessee Secretary of State — Rules of the Tennessee Motor Vehicle Commission, Chapter 0960-01 (June 2026 revision)
- 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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