Buying a Car Vocab

Front

What is the term for obtaining a loan to purchase a vehicle?

Back

Financing

Front

What is the upfront payment made when getting a car loan called?

Back

Down payment

Front

What does MPG stand for in relation to vehicle efficiency?

Back

Miles per gallon

Front

What is the term for the decrease in a car's value over time due to wear and tear?

Back

Depreciation

Front

What document certifies that a vehicle can legally be driven on public roads?

Back

Registration

Front

What is the purpose of a down payment when financing a car?

Back

To reduce the amount of the loan and show commitment to the purchase.

Front

How does depreciation affect the resale value of a car?

Back

It reduces the resale value as the car ages and accumulates mileage.

Front

What factors can influence a car's MPG rating?

Back

Engine efficiency, weight of the vehicle, driving habits, and road conditions.

Front

What is the relationship between financing and interest rates?

Back

Interest rates determine the cost of borrowing money for financing a vehicle.

Front

What is the significance of vehicle registration?

Back

It connects the vehicle to the owner and ensures it meets legal requirements for road use.