click below
click below
Normal Size Small Size show me how
Chapter 9 Flashcards
Financial Lit
Term | Definition |
---|---|
Sticker Price | Three charges; base charge, option, and destination charge |
Base Price | price of the engine and other standard equipment of any particular model |
Options | extra equipment for convenience, safety, or appearance, base price |
Destination Charge | the cost of shipping the vehicle from the factory to the dealer |
Dealers Charge | percent of the base price plus a percent of the options price plus the destination charge |
Used Vehicle Guide | the average prices for used vehicles |
Liability Insurance | provides financial protection to policy holder against claims for bodily injury and property damage as a result of an accident |
Collision Insurance | pays the damage for to the insured vehicle caused by a collision with another motor vehicle or an object such as a telephone pole |
Comprehensive Insurance | pays the damage for the insured vehicles from looses due to fire, vandalism, theft, and just about any case other than a collision |
Deductible Clause | A clause in an insurance policy that requires the insured pays |
Annual Premium | the amount you pay each year for insurance coverage |
Variable costs | increase as the number of miles driven increase |
fixed costs | about the same regardless of how many miles you drive |
Depreciation | the decrease in the value of your vehicle from one year to the next because of its age and condition |
Lease | make monthly payments to the leasing company, the dealer, or the bank for two to five years |
Closed end Lease | a contract that allows you to use a vehicle for a set time period by making a specified number of payments |
Open end Lease | a contract allowing you to use a vehicle for a set time period by making a specified number of payments |
Rent | use an object by paying a set fee |