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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 |