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Business Finance
Ch 9 Vehicle Transportation
| Term | Definition |
|---|---|
| sticker price | the total cost of a new vehicle, including base price, options, and destination charge |
| base price | the price of the engine, chassis, and any other standard equipment for a particular model, referred to as the manufacturer's suggested retail price |
| options | extra equipment on a vehicle for convenience, safety, or appearance, such as a sunroof, AC, and tinted glass, which is not included in the base price |
| destination charge | the cost of shipping a vehicle from the factory to the dealer |
| dealer's cost | the price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percept of the options price, plus the destination charge |
| used-vehicle guide | guides published monthly that give the average prices for used vehicles that were purchased from dealers during the previous month |
| liability insurance | provides financial protection to the policyholder against claims for bodily injury and property damage as a result of an accident |
| collision insurance | pays for damage to the insured vehicle cause by a collision with another motor vehicle or an object such as a telephone pole |
| comprehensive insurance | pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and just about any cause other than collision |
| deductible clause | a clause in an insurance policy that requires the insured to pay a certain amount before the insurance company pays |
| annual premium | the amount you pay each year for insurance coverage |
| variable costs | costs of producing a product that vary directly wit the number of units produced, such as raw materials and packaging |
| fixed costs | production or vehicle costs which remain about the same regardless of how much you produce or drive, such as building rent or vehicle registration |
| depreciation | spreading the cost of an item over its estimated life |
| lease | an agreement for the use of property, such as a building or vehicle, usually on an annual basis |
| close-end lease | a contract that allows you the use of property, such as a vehicle, for a set time period by making a specified number of payments |
| open-end lease | a contract allowing you the use of property, such as a vehicle, for a set time period by making a specified number of payments. At lese end, you can purchase the item for its residual value |
| rent | agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis |
Created by:
winninghamp
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