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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 |