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PCS Financial Math

Chapter 9 Vocabulary - Vehicle Transportation

TermDefinition
sticker price the total price of a vehicle, including the base price, options, and destination charge
base price the price of a vehicle's engine, chassis, and any other standard equipment for a particular model
options extra equipment on a vehicle not included in the base price, such as a sunroof, air conditioning, and tinted glass
destination charge the cost of shipping a vehicle from the factory to the dealer
dealer's cost the price actually paid for a vehicle by a dealer, usually expressed as a percent. The dealer's cost is not negotiated.
used-vehicle guides guides published monthly that give the average prices for vehicles that were purchased from dealers during the previous month
liability insurance financial protection for a family in case a family member dies
comprehensive insurance insurance protection from losses due to fire, vandalism, theft, and other causes
collision insurance insurance that pays to repair a vehicle if it's involved in an accident
deductible clause an insurance clause that requires the insured to pay a certain amount before the insurance company pays
variable costs the costs of producing a produce that vary directly with the number of units produces, such as raw materials and packaging. Also, vehicle costs that increase the more you drive, such as gasoline and tires
fixed costs production or vehicle costs that remain the same no matter how much you produce or drive, such as building rent or vehicle registration
depreciation a decrease in the value of an item or vehicle because of its age or condition
lease an agreement for the use of property, such as a building or a vehicle, usually on an annual basis
rent renting vehicle charge a daily rate plus a per-mile rate
closed-end lease make specific number of payments, return the vehicle, and owe nothing (unless you damage the vehicle beyond fair wear and tear or exceed the mileage limit)
open-end lease at the end of lease, you may buy the vehicle for its residual value
Created by: Ms.Sala