Buying a car · Guide for Texas
The bilingual dealership glossary
Twenty-one terms you will hear at the sales desk, in English and Spanish, with the rules of Texas, 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. Texas sets no dollar cap. The law only requires the documentary fee to be "reasonable", charged equally to cash and credit buyers, stated by amount in the buyer's order and in the contract, and shown next to that amount with this notice: "A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW." (Tex. Fin. Code § 348.006(c)). The dealer must also post that notice visibly in each place where a sale is finalized and — this matters if you were served in Spanish — if the language primarily used in the oral sales presentation is not the language of the contract, it must hand you the notice in writing in the language they spoke to you (§ 348.006(d)). Amount: TxDMV’s published dealer manual describes $225 for motor-vehicle sales financed under Finance Code Chapter 348 and requires a cost analysis demonstrating reasonableness before a higher fee is charged (citing 7 Tex. Admin. Code §84.205). Filing alone does not make a higher fee reasonable or otherwise lawful; the applicable notice, cost and reasonableness requirements must also be met. Confirm the rule that applies to your transaction with OCCC. Two things worth knowing: as a prospective buyer you can ask the OCCC whether the dealer filed notice of an increased fee and for how much, by giving them your buyer's order or a draft contract (§ 348.006(e-3)(2)); and this section by itself gives you no right to sue (§ 348.006(g)(1)). Negotiate it as part of the price. | 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 | 6.25% state, no local add-on. In a private sale you pay it at the county tax office when titling, within 20 working days (see the deadline note); if you paid less than 80% of the standard presumptive value (SPV) set by TxDMV, tax is figured on that 80%, unless you bring an independent valuation (Comptroller form 14-128) within 30 days. Late: 5% penalty (1–30 days) or 10% (over 30). A dealer collects the tax at sale. On a trade-in only the difference is taxed. Car bought out of state: 6.25% minus tax paid to the other state. New resident with a car already in their name: flat $90. Gift between close family: $10. | 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
- Texas Comptroller — Motor Vehicle Sales and Use Tax; Standard Presumptive Value (publication 96-254); Tex. Tax Code § 152.021, § 152.0412, § 152.023
- Tex. Fin. Code § 348.006 — Principal balance; inclusion of documentary fee
- 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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