EPF Unit 7 - Buying a Car/Loans/Insurance

Front

Insurance that pays for damage you cause to another person's vehicle, but not your own.

Back

Liability

Front

Coverage that pays for your car if it's damaged in an accident

Back

Collision

Front

Insurance coverage that pays for losses that are out of your control (weather related, fire, vandalism, etc.)

Back

Comprehensive

Front

if you have to get a loan to purchase a vehicle it's known as...

Back

financing

Front

The cost you pay each year to borrow money for a purchase like a car (Hint: it includes fees that are rolled into the loan like registration and title fees)

Back

Annual Percentage Rate (APR)

Front

Having a lower APR could mean that your...

Back

monthly car payment is lower

Front

A reduction in the value of an asset over time is called; Your new car does this by 10% when you drive it off the lot.

Back

depreciation

Front

You're likely to save more money in the long run if you... Buy a used car, Lease a car, Buy a new car

Back

Buy a used car

Front

Most people cannot afford to pay for a new car in one day. Instead, people pay the cost over time, but sellers require a certain amount of money the day you buy it. This is called what?

Back

down payment

Front

When borrowing money from a bank, this is the amount of your monthly car payment that goes towards paying off your loan after interest has been deducted

Back

principal