click below
click below
Normal Size Small Size show me how
Gen Business-Finance
Finanacing a Car
| Question | Answer |
|---|---|
| Sticker price | Total of base price option destination charge |
| Base price | Price of the car w/only standard equipment |
| Options | Extra features such as air condition heat radio |
| Destination charge | Cost of shipping car from the factory to the dealer |
| Margin of profit | Dealers profit expressed as a percentage of the sticker price |
| Down payment | Money paid before you get a car usually 20 to 30% |
| Amount financed | Money you borrow from a bank credit union credit card company savings loan or car dealership |
| Premium | Annual cost once a year |
| Driver rating factor | Determined by your age driving record other factors |
| Liability | Injury or harm the driver may do to other not in their car |
| Property damage | Damage done by the driver to any vehicle or property of others |
| Depreciation | Decrease in value |
| Variable cost | Depreciation plus cost of repairs maintenana |
| Lease | Pay automobile dealer a monthly fee in exchange for the use of a car for a specified period at the end of time you can return it or buy it |