Terminology Flash Cards 7-Buying A Car

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Auto Dealership

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A business that sells new or used cars

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Auto Lease

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An agreement where an individual makes monthly payments to use a car for a certain length of time instead of purchasing the car

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Bumper-to-Bumper Warranty

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A comprehensive plan that covers most car parts, with a few exceptions, for a limited period of time

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"Buy-Here, Pay-Here" Financing

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An auto loan that is financed by the dealership you are getting the car from

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Captive Finance Company

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A financing division of the dealership you are getting the car from that can offer you an auto loan

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Certified Pre-owned Car

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A used car that has been inspected, refurbished, certified and warranted by the original manufacturer

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Dealer-Arranged Financing

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A type of auto loan where the dealership connects you with a lending institution (bank, credit union, etc.)

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Depreciation

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A decrease or loss in value

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Extended Warranty

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A service contract that provides vehicle repair at no or low cost, after the manufacturer warranty expires

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Financing

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To buy an item with credit and pay it back over time with interest