| A | B |
|---|
| finance charge | The cost of the loan in dollars and cents |
| annual percentage rate | The true interest rate of the loan |
| invoice price | The manufacturer's initial charge (including delivery) to the dealer. |
| Base Price | The cost of the vehicle with standard equipment and warranty but without optional equipment. |
| The Monroney Sticker Price (MSRP) | Shows the base price, manufacturer's transportation charge, and the fule |
| Dealer sticker price | The Monroney sticker price plus the suggested retail price of the dealer installed options. |
| The Used Car Rule | requires all used car dealers to place a Buyer's Guide in the window of each vehicle they offer for sale. |
| The Buyer's Guide | Explains any specific warranty protection that is provided on a used car. It also states whether there is no warranty, and as is warranty, or an implied warranty |
| Adhesion Contract | A standard- form contract on which smart buyers read the small print and cross out items with which they disagree. |
| Lemon Laws | Many states have passed these to protect consumers when they buy defective vehicles either new or used. |
| Lemon | A substantially defective new car that has been at a dealers 3 times for the repair of the same defect or any combination of defects. The car must be no older than one year and must not have mileage in excess of 15,000 to qualify. |
| Odometer protection | It is illegal for a vehicle owner to turn back or disconnect the odometer, or mileage indicator of a vehicle. |
| Bonded | Some states require automobile shops to be bonded. The bonding company is an insurer who must pay the consumer for losses suffered as a result of wrongdoing on the part of the repair shop. |
| Financial responsibility Law | requires vehicle owners to prove they can pay for damages or injury caused by an automobile accident. |
| bodily injury liability | protects the insured against claims or lawsuits for injuries or death caused by negligence. |
| medical payments insurance | pays for medical and sometimes funeral expenses resulting from bodily injuries to anyone occupying the policyholder's car in an accident. |
| uninsured motorist insurance | provides protection when the insured is injured in a automobile accident that is caused by a driver who has no insurance. |
| under-insured motorist insurance | protects you when another driver has insurance, but not enough to pay for any injuries. |
| Property damage liability insurance | applies when you damage the property of others, including another car, telephone pole, or a tree. |
| collision insurance | covers damage to your vehicle when it is in an accident and pays for vehicle repairs regardless of who was at fault. |
| comprehensive insurance | applies to damage to your vehicle from sources other than collision including fire, theft, lightning, flood, riot and vandalism. |
| no fault insurance | Under this, all drivers collect money from their own insurance companies regardless of who was at fault. |
