4WD (four-wheel drive): A vehicle where engine power can be delivered to all four wheels, improving off-roading ability.
A
ABS (anti-lock braking system): A safety innovation which prevents wheels skidding in slippery conditions.
ANCAP rating: ANCAP is the Australian motoring body responsible for assessing the crash safety of new vehicles. It awards each car tested a score out of five, with five being the safest.
Auto (automatic): A car with an automatic gearbox rather than a manual transmission.
AWD (all wheel drive): Similar to 4WD – the engine’s power is delivered to all four wheels, although ‘4WD’ or ‘4x4’ often refers to more rugged off-roaders while AWD tends to be applied to more urban-focused vehicles.
B
Build date: The month and year the vehicle was built. It’s usually stamped on the build plate, which is typically in a rear corner of the engine compartment. This is used to establish the age of the car for the purposes of a used-car valuation.
Buydown: A financing term relating to an upfront payment to decrease the interest rate on a loan.
C
Changeover price: The difference between the trade-in price that will be paid on your present vehicle and the drive-away price for your new car.
Climate control: A sophisticated type of air conditioning where a specific temperature (e.g. 22ºC) can be designated. ‘Dual zone’ climate control allows for different temperatures in different parts of the cabin.
Comparison rate: This rate factors in all fees and charges incurred during the life of a car loan so it can be compared with the comparison rates of other loans. The interest rate alone can be misleading due to other fees and charges that can make the loan more expensive than it first appears.
Compliance date: The month and year that the vehicle was certified as complying with Australian Design Rules – usually a few months after the build date.
Condition: A general description of the vehicle’s mechanical and/or visual state. Sellers rarely understate their vehicle's condition.
Credit history: A financial record which allows lenders to define your ability to repay a loan.
CVT (constantly variable transmission): This is an automatic transmission which features an infinite number of drive ratios, through which the transmission transitions depending upon accelerator/throttle pressure.
D
DAB (digital audio broadcasting): A modern form of radio where the signal is delivered digitally rather than via AM or FM radio waves.
Dealer warranty: A dealer warranty could specify that you must return to that dealership for servicing to maintain cover and, rather than providing useful extra protection, could be a means of tying you to more expensive servicing.
DL (dealer licence): These letters, followed by a number, indicate the vehicle is being offered for sale by a licenced car dealer.
Drive away price: The total cost of buying a vehicle including on-road costs, as distinct from MLP (manufacturer’s list price) and RRP (recommended retail price).
DSG (direct shift gearbox): Commonly used within Volkswagen vehicles, a DSG is an automatic transmission that employs a multiple-plate wet clutch system.
E
EFI (electronic fuel injection): A computer controls the fuel being supplied to the engine, which improves engine smoothness and economy.
Extended warranty: An extended warranty can be a plus, but this depends on whether it’s a factory warranty or a dealer warranty. A factory warranty is great. A dealer warranty might not be worthwhile (see Dealer warranty above).
F
Factory air (factory-fitted air conditioning): The air conditioner unit was designed by the vehicle manufacturer, to suit the vehicle. Nearly all modern vehicles are sold this way.
FWD (front-wheel drive): The engine drives the front wheels. The most common drive system in modern cars.
H
Hybrid: A vehicle that runs an internal combustion engine assisted by a small electric motor to achieve better fuel economy.
I
ICE (internal combustion engine): A traditional automotive engine that burns fossil fuels, as distinct from the electric motor in an electric vehicle (EV).
Infotainment screen: A portmanteau of ‘information’ and ‘entertainment’, it refers to a car’s central touchscreen, which might control anything from the radio to air conditioning and satellite navigation.
L
LD (licenced dealer): See DL.
M
Man. (manual): A transmission system where the driver changes gears. Requires more skill to operate than an automatic.
Manufacturer’s warranty: The factory warranty (anywhere up to 10 years, depending on the brand) and a fixed or unlimited number of kilometres. This is the car’s official warranty and does not come with any obligation to return to a dealership for servicing. If you don't get your car serviced at a dealership, however, and your mechanic doesn't use genuine parts, then you may not be covered if a part fails.
Model year: Manufacturers typically assign a model year to a certain specification – for example, an MY25 (model year 2025) car might have different features to a MY24 or earlier.
O
O/D (overdrive): Additional gear ratio which allows the engine to turn more slowly. Found in older or classic cars, it reduces fuel consumption and engine noise at highway speeds.
Offers: The seller will accept the highest offer received.
ONO (or nearest offer): If no buyer is willing to pay the asking price, the seller will accept the next highest bid.
ORC (on road costs): When purchasing a new car, these costs are applied and consist of dealer sale preparation, CTP green slip, and taxes. These costs are applied in addition to the recommended retail price (RRP) or sale price of the vehicle.
Optional extra: Item fitted at extra cost, either by the vehicle manufacturer or the car dealer.
P
PHEV (plug-in hybrid electric vehicle): A car that has both a traditional internal combustion engine and a battery-powered electric motor, meaning it can travel short distances (usually around 50km) on purely electric power before the battery requires charging or the petrol engine takes over.
PPSR (Personal Property Securities Register): Formerly known as REVS, this government department holds background information pertaining to financial and insurance titles which may feature on a used car. This background check is essential when purchasing a used car, a V.I.N and engine number is required to carry out a check. The PPSR can be reached at www.ppsr.gov.au or on 1300 007 777.
Power steering: An electronic or hydraulic system that reduces the physical effort required to turn the steering wheel, especially at low speeds (e.g. parking). Nearly all modern cars have power steering.
R
RON (research octane number): Refers to the octane rating of a fuel. The higher the number (e.g. 95 RON or 98 RON) the higher the pressure generated in the engine during combustion. Some engines have minimum or maximum RON requirements, and this number is usually indicated on the filler cap door.
RWD (rear-wheel drive): The engine drives the rear wheels. Once widespread, RWD is now seen most commonly on sports or performance cars.
S
SUV (sports utility vehicle): While this term used to refer to an urban-focused 4WD, it is now used to describe a plethora of vehicles with a higher driving position and ride height than a traditional sedan or hatchback. Examples include the Toyota RAV4, Honda CR-V and Kia Sportage.
Standard Items: fitted to the vehicle for the listed price (as distinct from ‘options’ and ‘extras’).
Station wagon: A sedan-style car with a larger, windowed boot useful for carrying bulky items. Sometime referred to as an ‘estate’.
T
Twin cam (twin camshafts): Two camshafts are used to control the engine valves, improving combustion and therefore engine efficiency. Also: quad cam (four camshafts).
U
Unregistered: The vehicle’s registration has lapsed and cannot be driven legally on the road until it is re-registered.
V
VIN (Vehicle Identification Number): This number identifies the vehicle and its specifications, essential for carrying out a PPSR check.
