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Chapter 9 Flashcards

Financial Lit

TermDefinition
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
Created by: Justinisalol
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