{"id":129,"date":"2015-08-30T21:51:34","date_gmt":"2015-08-30T19:51:34","guid":{"rendered":"http:\/\/www.autodna.com\/blog\/?p=129"},"modified":"2023-07-04T15:24:51","modified_gmt":"2023-07-04T13:24:51","slug":"basic-car-terms-you-may-encounter","status":"publish","type":"post","link":"https:\/\/www.autodna.com\/blog\/basic-car-terms-you-may-encounter\/","title":{"rendered":"Basic car terms you may encounter when buying a cars"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e271724ebba\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e271724ebba\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.autodna.com\/blog\/basic-car-terms-you-may-encounter\/#Learn_about_a_few_car_terms_that_may_be_useful_to_you_when_buying_a_car\" >Learn about a few car terms that may be useful to you when buying a car<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.autodna.com\/blog\/basic-car-terms-you-may-encounter\/#The_finances\" >The finances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.autodna.com\/blog\/basic-car-terms-you-may-encounter\/#Car_purchase\" >Car purchase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.autodna.com\/blog\/basic-car-terms-you-may-encounter\/#Importing_a_car\" >Importing a car<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.autodna.com\/blog\/basic-car-terms-you-may-encounter\/#After_the_purchase\" >After the purchase<\/a><\/li><\/ul><\/nav><\/div>\n<p>Purchase of a new car is an important change in one&#8217;s life. Be well prepared for it, so that you only have good memories associated with it. Before you take any action, we suggest that you familiarize yourself with the basic car terms you may encounter in the process.<\/p>\n<p><!--more--><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Learn_about_a_few_car_terms_that_may_be_useful_to_you_when_buying_a_car\"><\/span>Learn about a few car terms that may be useful to you when buying a car<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Below we have collected terms that are divided into 4 groups:<\/p>\n<ul>\n<li>the finances<\/li>\n<li>car purchase<\/li>\n<li>importing a car<\/li>\n<li>after the purchase<\/li>\n<\/ul>\n<p>In each group there are concepts related to the main topic.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_finances\"><\/span>The finances<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Few of us are lucky enough to be able to afford exactly the car they need and like. The financial market offers a couple of options here, such as car loan, operating lease, personal lease and 50\/50 loan. You will find more about these below:<\/p>\n<p>Car loan \u2013 a financial instrument offered by a bank to a customer who wishes to purchase a car but cannot afford one. The basic parameters to be compared when checking different car loan offers are the credit facility fee and notional interest, as well as other necessary costs such as loan insurance.<\/p>\n<p>50\/50 (or 40\/60, 60\/40) loan \u2013 a loan that allows you to pay 50% of the vehicle price on the day of purchase, and the balance is to be paid later, on a mutually agreed day (e.g. a year later).<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong><div class=\"check-vin-btn-container check-vin-btn-container--orange\">\n\t\t\t\t\t\t<div class=\"check-vin-btn--arrow\"><\/div>\n\t\t\t\t\t\t<iframe id=\"ASD-PA-0005010200-31-906\" title=\"Purchase the autoDNA reports in a bundle\" src=\"https:\/\/afilio.autodna.com\/ext\/load\/0005010200\/31?p_label=Check+VIN+number&p_color=orange\" style=\"width: 271px; height: 59px; border: 0;\" scrolling=\"no\"><\/iframe><script type=\"text\/javascript\">PA.load(\"0005010200-31-906\", \"packages\");<\/script>\r\n\n\t\t\t\t\t<\/div><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Own share \u2013 the part of vehicle cost that the buyer pays themselves. More and more banks do not require any share on the part of the buyer but the offers prepared for those who are able to have one should have better conditions.<\/p>\n<p>Operating lease \u2013 one of the most popular ways of purchasing vehicles by companies. The car is, technically speaking, owned by the company (the lessor), while the driver (the lessee) calculate leasing interest as part of tax deductible expenses and deduct VAT. Operating lease often allows the lessee to purchase the vehicle when the lease ends.<\/p>\n<p>Personal lease \u2013 an offer similar to operating lease but directed to persons not conducting business activity.<\/p>\n<p>Finance lease \u2013 an offer directed to companies; unlike operating lease, financial lease allows the lessee to own the vehicle. Only the interest rate is calculated as part of tax deductible expenses and VAT is paid in advance with the first lease repayment. VAT is deductible.<\/p>\n<p>Lease repayment \u2013 a predetermined monthly amount paid by the lessee to the lessor for use of the vehicle.<\/p>\n<p>Leasing fee (initial payment) \u2013 lessee&#8217;s own share in lease agreement.<\/p>\n<p>Residual value \u2013 the price for which the lessee can purchase the leased vehicle when operating lease agreement ends.<\/p>\n<p>Facility fee \u2013 a fee paid to a financial institution for signing the lease agreement or advancing a credit.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Car_purchase\"><\/span>Car purchase<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While purchasing a car, whether from a dealer or just another individual, you need to pay attention to the following:<\/p>\n<p>ASC (authorized service centre) \u2013 a service centre authorized by the manufacturer. A car that is regularly serviced in ASCs only, when sold, will be worth more than one serviced elsewhere.<\/p>\n<p>VIN (vehicle identification number) \u2013 a unique 17-digit car ID assigned to it during manufacturing. It enables you to check vehicle history (e.g. whether it has been repaired following an accident, or stolen) with the use of such services as <a href=\"https:\/\/www.autodna.com\/\" target=\"_blank\" rel=\"noopener\">autoDNA.com<\/a>. The <a href=\"https:\/\/www.autodna.com\/vin-number\" target=\"_blank\" rel=\"noopener\">VIN number<\/a> displayed in the car must be easily readable and look unaltered.<\/p>\n<p>Technical examination \u2013 a compulsory examination carried out annually in vehicles older than 5 years, or in 3 and 5 years since registration in new vehicles. A car you are looking to buy should have valid technical examination documents.<\/p>\n<p>Vehicle history card \u2013 a document listing all vehicle and owner data, including previous owners. It was introduced in 1999.\u00a0 The seller transfers the card to the buyer during purchase, as it is necessary for vehicle registration.<\/p>\n<p>Vehicle registration card \u2013 a document issued by the Department of Transportation during registration. Together with the registration form, the new owner of the vehicle must hand over the registration card obtained from the previous owner.<\/p>\n<p>VAT margin invoice \u2013 a dealer issuing a VAT margin invoice taxes the difference between the price they have paid for the car and the price you are paying for it as a customer. The invoice should have the total cost you are paying for the vehicle, without listing the VAT separately; there should also be a note saying \u201cmargin procedure \u2013 second-hand goods.\u201d This option does not pay if you are running a business and can deduct the VAT as with a VAT margin invoice you cannot deduce the VAT. You may also encounter further problems if you have purchased a car as a person (not business) and asked for this kind of invoice if it turns out the seller has not paid the VAT; it might then be you who will be asked to pay the tax.<\/p>\n<p>VAT invoice \u2013 a proof of purchase alternative to a sales agreement.<\/p>\n<p>Sales-purchase agreement (SPA) \u2013 a document confirming the transfer of possession of the car, alternative to a VAT invoice. The agreement should have a date of sales-purchase, detailed data of both the seller and the buyer, detailed data of the vehicle (such as make and model, engine, date of first registration, mileage, registration number, VIN), price and payment method.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong><div class=\"check-vin-btn-container check-vin-btn-container--orange\">\n\t\t\t\t\t\t<div class=\"check-vin-btn--arrow\"><\/div>\n\t\t\t\t\t\t<iframe id=\"ASD-PA-0005010200-31-906\" title=\"Purchase the autoDNA reports in a bundle\" src=\"https:\/\/afilio.autodna.com\/ext\/load\/0005010200\/31?p_label=Check+VIN+number&p_color=orange\" style=\"width: 271px; height: 59px; border: 0;\" scrolling=\"no\"><\/iframe><script type=\"text\/javascript\">PA.load(\"0005010200-31-906\", \"packages\");<\/script>\r\n\n\t\t\t\t\t<\/div><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Third party liability \u2013 a compulsory personal liability insurance. It protects you from charges when you have caused an accident while driving the vehicle. The basic scope of TP insurance should be the same in each insurance provider. When purchasing a car you need to determine when its current TP insurance expires.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Importing_a_car\"><\/span>Importing a car<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you decide to purchase a car imported from abroad, you may be subject to additional procedures and fees:<\/p>\n<p>Duty \u2013 the fee paid for importing a vehicle to Poland from outside the EU. The standard value is 10% but the EU has signed contracts reducing it with certain countries.<\/p>\n<p>Excise tax \u2013 the fee paid for importing a vehicle to Poland, depending on the engine:<\/p>\n<ul>\n<li>engines up to 2000 cm3 \u2013 3,1% excise tax calculated from the tax base<\/li>\n<li>engines over 2000 cm3 \u2013 18,6% excise tax calculated from the tax base<\/li>\n<\/ul>\n<p>For vehicles imported from the EU the tax base is the price of car as per sales-purchase agreement multiplied by the exchange rate. For vehicles imported from outside the EU, it is the customs duty value plus duty.<\/p>\n<p>Recycling fee \u2013 recycling fee and its amount depends on the region where you live. The payment is required for vehicle registration.<\/p>\n<p>Sworn translation \u2013 before the vehicle is registered, the sales documents must be translated to Polish by a sworn translator.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"After_the_purchase\"><\/span>After the purchase<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After you have purchased the car, you need to follow a number of procedures such as tax payment, vehicle registration, or selection of additional insurance.<\/p>\n<p>PCC3 \u2013 you need to deliver a filled-in PCC3 form to the Tax Office within 14 days since purchase. You will also be asked to pay the tax on civil law transactions (2% of the transaction amount).<\/p>\n<p>Vehicle registration \u2013 a procedure of obtaining a registration card with the data of the new owner. The form should be accompanied by a proof of ownership, vehicle&#8217;s current registration card with a valid technical examination, vehicle history card and registration plates. If the vehicle has been imported, you also need to attach the proof of payment of duty (for vehicles from outside the EU), excise tax, recycling fee, VAT (or exemption) and sworn translations of purchase-related documents.<\/p>\n<p>Own Damages \u2013 optional insurance that reimburses you if the car is damaged, destroyed or stolen. This is the insurance you will use to repair your own car if you have caused an accident. Policy conditions will differ in different insurance providers.<\/p>\n<p>Roadside Assistance \u2013 optional, non-compulsory insurance that provides assistance if the car breaks down, battery dies, a tyre is punctured, etc. Different assistance providers will offer different policy conditions.<\/p>\n<p>Accident Insurance \u2013 optional insurance applicable to your passengers in case you have an accident.\u00a0 Again, conditions may be different in each policy provider.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong><div class=\"info-frame-container info-frame-exclamation info-iframe-border--green\">\n      <div class=\"info-frame-icon info-frame-exclamation\"><\/div>\n\n\t\t\t<div class=\"info-frame-header info-frame-header-orange\">It is good to know<\/strong><strong><\/div>\n\t\t\t<div class=\"info-frame-content\"><\/strong><\/p>\n<p style=\"text-align: center;\">Did you like this article? Anything you\u2019d like to ask in your comment? Feel free to share your feedback and comment at the bottom of the article. And remember \u2013 always before buying a car, motorcycle or even a trailer \u2013 check <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.autodna.com\/vehicle-history\" target=\"_blank\" rel=\"noopener\">vehicle history<\/a> and <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.autodna.com\/\" target=\"_blank\" rel=\"noopener\">free VIN lookup<\/a> with autoDNA based on the <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.autodna.com\/vin-number\" target=\"_blank\" rel=\"noopener\">VIN number<\/a>. <a class=\"waffle-rich-text-link\" href=\"https:\/\/www.autodna.com\/vin-check\" target=\"_blank\" rel=\"noopener\">VIN check<\/a> is one of the most important things to do before deciding to buy a used vehicle. Thanks to this, autoDNA helps you make an informed decision.<\/p>\n<p style=\"text-align: center;\"><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: center;\"><strong><div class=\"check-vin-btn-container check-vin-btn-container--orange\">\n\t\t\t\t\t\t<div class=\"check-vin-btn--arrow\"><\/div>\n\t\t\t\t\t\t<iframe id=\"ASD-PA-0005010200-31-906\" title=\"Purchase the autoDNA reports in a bundle\" src=\"https:\/\/afilio.autodna.com\/ext\/load\/0005010200\/31?p_label=Check+VIN+number&p_color=orange\" style=\"width: 271px; height: 59px; border: 0;\" scrolling=\"no\"><\/iframe><script type=\"text\/javascript\">PA.load(\"0005010200-31-906\", \"packages\");<\/script>\r\n\n\t\t\t\t\t<\/div><\/strong><\/p>\n<p style=\"text-align: center;\"><strong>\u00a0<\/strong><\/p>\n<p style=\"text-align: center;\"><strong><\/div>\n    <\/div><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Purchase of a new car is an important change in one&#8217;s life. Be well prepared for it, so that you only have good memories associated with it. Before you take any action, we suggest that you familiarize yourself with the basic car terms you may encounter in the process.<\/p>\n","protected":false},"author":6,"featured_media":2433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[359,361,176],"tags":[],"class_list":["post-129","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-autodna-advises","category-all","category-blog"],"_links":{"self":[{"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/posts\/129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/comments?post=129"}],"version-history":[{"count":10,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/posts\/129\/revisions"}],"predecessor-version":[{"id":2205,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/posts\/129\/revisions\/2205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/media\/2433"}],"wp:attachment":[{"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/media?parent=129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/categories?post=129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.autodna.com\/blog\/wp-json\/wp\/v2\/tags?post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}