| A | B |
|---|
| carpooling | Grouping with others to share rides to and from work |
| deductible | The amount an insured person must pay before the insurance company pays on a claim |
| disclosure sheet | Describes any repairs or replacements done on a used car |
| make | The brand of a vehicle |
| model | A line of vehicles made by a specific company, such as Ford Taurus |
| domestic | American-made |
| imported | Foreign-made |
| auto superstore | Dealerships with huge inventories of new and used vehicles |
| fuel economy | Type of fuel used and miles per gallon |
| power | A vehicle’s ability to accelerate for speed |
| public transit | Public modes of transportation available in cities---bus, subway, trolley |
| performance | A vehicle’s ability to handle, brake, and accelerate on the road |
| invoice price | The price the dealer pays the manufacturer |
| base price | The price of a vehicle with standard equipment |
| options | Features available at extra cost or special prices |
| manufacturer’s suggested retail price | Base price + price options installed by manufacturer + manufacturer’s |
| sticker price | Dealer’s initial asking price as found on the sticker in the vehicle window |
| up front costs | Costs when signing a lease---deposit, taxes, and registration fees |
| leasing | Monthly payments in eschange for exclusive use of vehicle for a time |
| capitalized cost | Price for a leased care |
| capitalized cost reduction | Payment similar to down payment that results in lower monthly payment |
| lease term | Length of the lease---usually, 24, 36, or 48 months |
| option to purchase | At end of lease, the alternative to purchase the leased vehicle |
| residual value | The worth of a leased vehicle at the end of the lease |
| installment loan | A loan to be repaid in equal payments |
| liability insurance | Covers when liable or responsible for an accident where others are injured or killed |
| collision insurance | Pays for loss or damages to insured person’s care due to accident |
| comprehensive physical damage insurance | Pays for loss or damage not resulting from a collision---e.g., fire, theft, falling objects |
| no-fault auto insurance | Pays claims regardless of who is at fault |
| underinsured motorist insurance | Covers difference between liability coverage and underinsured motorist and the amount of losses |
| rental reimbursement | Covers costs of renting a care while yours is being repaired |
| premium | The cost for insurance coverage for the term of the insurance policy |
| depreciate | To decrease in value |
