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Gen Business-Finance

Finanacing a Car

QuestionAnswer
Sticker price Total of base price option destination charge
Base price Price of the car w/only standard equipment
Options Extra features such as air condition heat radio
Destination charge Cost of shipping car from the factory to the dealer
Margin of profit Dealers profit expressed as a percentage of the sticker price
Down payment Money paid before you get a car usually 20 to 30%
Amount financed Money you borrow from a bank credit union credit card company savings loan or car dealership
Premium Annual cost once a year
Driver rating factor Determined by your age driving record other factors
Liability Injury or harm the driver may do to other not in their car
Property damage Damage done by the driver to any vehicle or property of others
Depreciation Decrease in value
Variable cost Depreciation plus cost of repairs maintenana
Lease Pay automobile dealer a monthly fee in exchange for the use of a car for a specified period at the end of time you can return it or buy it
Popular Business sets

 

 



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