| A | B |
|---|
| Public transit | Community modes of transportation available in cities---bus, subway, trolley |
| Carpooling | Grouping with others to share rides to/from work |
| AS IS | Statement of NO Warranty on a used vehicle |
| Auto superstore | Dealerships with HUGE inventories of new and used vehicles |
| Base price | Price of a vehicle with standard equipment |
| Capitalized cost | Price for a leased car |
| Capitalized cost reduction | Payment similar to down payment that results in lower monthly payment |
| Depreciate | To decrease in value |
| Disclosure statement | Describes any damage, repairs or replacements done on a used care |
| Domestic | American-made |
| Down Payment | Portion of total cost that is paid when product/service is purchased; reduces loan |
| Fuel economy | Type of fuel used and miles per gallon (MPG) calculation |
| Imports | Foreign-made |
| Installment plan | Loan to be repaid in equal payments; usually monthly |
| Invoice price | Price the dealer pays the manufacturer |
| Lease term | Length of the lease---usually, 24, 36, or 48 months |
| Leasing | Monthly payments in exchange for exclusive use of vehicle for a time |
| Make | Brand of a vehicle; Ford, Porsche, Kia, Honda |
| Manufacturer’s Suggested Retail Price (MSRP) | Base price + price options installed by manufacturer + manufacturer’s transportation charge; always negotiate with dealer for discounts! |
| Model | Line of vehicles made by a specific company; such as Focus by Ford |
| Option to purchase | At end of lease, the alternative to purchase the leased vehicle |
| Options | Features available at extra cost or special prices |
| Performance | Vehicle’s ability to handle, brake, and accelerate on the road |
| Power | Vehicle’s ability to accelerate for speed |
| Residual value | Worth of leased vehicle at end of the lease (original value less depreciation) |
| Sticker price | Dealer’s initial asking price as found on the vehicle window |
| Up front costs | Costs when buying/signing a lease---includes deposit, taxes, & registration fees |
| Liability insurance | Covers when responsible for an accident where other people/their property is injured; split into bodily injury or property damages |
| Claim | Request by insured for payment by insurer after an accident or loss |
| Collision insurance | Pays for loss or damages to insured person’s care due to accident |
| Policy Term | Length of time insurance contract lasts |
| Comprehensive physical damage insurance | Pays for loss or damage NOT resulting from a collision---e.g., fire, theft, vandalism, hail, windstorm, wild animal |
| Insurer | Insurance company providing coverages |
| No-fault auto insurance | Pays claims regardless of who is at fault - NOT available in NC |
| Uninsured/Underinsured Motorist Insurance (UIM) | Covers insured’s damage when at fault driver has too low $ liability coverage, no coverage, or hit and run |
| Insured | Party purchasing insurance, aka policyholder |
| Rental reimbursement | Covers costs of replacement vehicle if yours is being repaired due to covered loss |
| Premium | Cost for insurance coverage for the term of the insurance policy |
| Policy | Contract between insured &insurer |
| Deductible | Amount insured person must pay before the insurance company pays a claim |
