That is exactly what it means! And you just select which car you're going to run right on the radio. Even better is you get finer adjustments like end-points on that radio as compared to your old one. Em, speaking of which, was it an old AM or FM radio with crystals? It worked in the Redcat, but you moved it to the Axial and now your range is limited? Sounds like RF interference maybe. If you put it back in the Redcat and it works, then definitely. If it still doesn't work, I'd suspect a flakey antenna wire.
My first RC had a AM transmitter/receiver and a brushed motor system. I put a Castle brushelss system in it, and it was fast as hell, for about 20ft, then nothing! The new motor system was so "noisy" RF-wise, I HAD to switch to a 2.4ghz system to run my car at all. Fortunately for me, 2.4ghz was just starting to get cheap with the FlySky GT2 for only $20. Nearest thing at the time in 2.4ghz anywhere close in price was a Tower Hobbies branded system for $79. Next up was well over $200.