Buying a Car Vocabulary

Buying a Car Vocabulary

Sticker price

The total cost of a new vehicle, including base price, options, and destination charge.

Multiple Choice

Sticker Price

• Extra equipment on a vehicle for convenience, safety, or appearance which is not included in the base price.

• The price of the engine, chassis, and any other standard equipment for a particular model, aka manufacturers suggested retail price.

• The total cost of a new vehicle, including base price, options, and destination charge.

• The price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percent of the options price, plus the destination charge.

Base price

The price of the engine, chassis, and any other standard equipment for a particular model, aka manufacturers suggested retail price.

Multiple Choice

Base Price

• The price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percent of the options price, plus the destination charge.

• Extra equipment on a vehicle for convenience, safety, or appearance which is not included in the base price.

• The total cost of a new vehicle, including base price, options, and destination charge.

• The price of the engine, chassis, and any other standard equipment for a particular model, aka manufacturers suggested retail price.

Options

 Extra equipment on a vehicle for convenience, safety, or appearance which is not included in the base price.

Multiple Choice

Options

• Extra equipment on a vehicle for convenience, safety, or appearance which is not included in the base price.

• The price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percent of the options price, plus the destination charge.

• The price of the engine, chassis, and any other standard equipment for a particular model, aka manufacturers suggested retail price.

Destination charge

The cost of shipping a vehicle from the factory to the dealer.

Multiple Choice

Destination Charge

• The total cost of a new vehicle, including base price, options, and destination charge.

• Extra equipment on a vehicle for convenience, safety, or appearance which is not included in the base price.

• The cost of shipping a vehicle from the factory to the dealer.

Dealer’s cost

 The price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percent of the options price, plus the destination charge.

Multiple Choice

Dealer's Cost

• The total cost of a new vehicle, including base price, options, and destination charge.

• The price of the engine, chassis, and any other standard equipment for a particular model, aka manufacturers suggested retail price.

• The price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percent of the options price, plus the destination charge.

Used-vehicle guide

Guides published that give the average prices for used vehicles that were purchased from dealers during the previous month.

Multiple Choice

Used Vehicle Guide

• An agreement for the use of property, such as a building or vehicle, usually on an annual basis.

• Provides financial protection to the policy holder against claims for bodily injury and property damage as a result of an accident.

• Guides published that give the average prices for used vehicles that were purchased from dealers during the previous month.

• A contract that allows you to lease a vehicle for a set period of time and have the option to purchase it at the end for the remainder of the balance.

Liability insurance

 Provides financial protection to the policy holder against claims for bodily injury and property damage as a result of an accident.

Multiple Choice

Liability Insurance

• Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object.

• Provides financial protection to the policy holder against claims for bodily injury and property damage as a result of an accident.

• Pays for damage to the insured vehicle from losses due to fire, vandalizm, theft, and almost any other cause, except collision.

• The amount you pay each year for insurance coverage.

Collision insurance

Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object.

Multiple Choice

Collision Insurance

• The amount you pay each year for insurance coverage.

• Pays for damage to the insured vehicle from losses due to fire, vandalizm, theft, and almost any other cause, except collision.

• Provides financial protection to the policy holder against claims for bodily injury and property damage as a result of an accident.

• Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object.

Comprehensive insurance

Pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and almost any other cause, except collision.

Multiple Choice

Comprehensive Insurance

• Provides financial protection to the policy holder against claims for bodily injury and property damage as a result of an accident.

• Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object.

• Pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and almost any other cause, except collision.

• Costs that vary depending on use.

Deductible

The amount the insured has to pay before the insurance company will pay on a claim.

Multiple Choice

Deductible

• Costs that vary depending on use.

• The amount you pay each year for insurance coverage.

• The amount the insured has to pay before the insurance company will pay on a claim.

• Costs that stay the same and don’t vary.

Annual premium

The amount you pay each year for insurance coverage.

Multiple Choice

Annual Premium

• The decrease in the value of your vehicle from one year to the next because of its age and condition.

• The amount the insured has to pay before the insurance company will pay on a claim.

• Costs that stay the same and don’t vary.

• The amount you pay each year for insurance coverage.

Variable costs

Costs that vary depending on use.

Multiple Choice

Variable Costs

• Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.

• Costs that vary depending on use.

• Costs that stay the same and don’t vary.

• The decrease in the value of your vehicle from one year to the next because of its age and condition.

Fixed costs

Costs that stay the same and don’t vary.

Multiple Choice

Fixed Costs

• Costs that stay the same and don’t vary.

• Costs that vary depending on use.

• The decrease in the value of your vehicle from one year to the next because of its age and condition.

Depreciation

The decrease in the value of your vehicle from one year to the next because of its age and condition.

Multiple Choice

Depreciation

• Costs that stay the same and don’t vary.

• Provides financial protection to the policy holder against claims for bodily injury and property damage as a result of an accident.

• A contract that allows you to lease a vehicle for a set period of time and have the option to purchase it at the end for the remainder of the balance.

• The decrease in the value of your vehicle from one year to the next because of its age and condition.

Lease

An agreement for the use of property, such as a building or vehicle, usually on an annual basis.

Multiple Choice

Lease

• The decrease in the value of your vehicle from one year to the next because of its age and condition.

• An agreement for the use of property, such as a building or vehicle, usually on an annual basis.

• Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.

• Costs that stay the same and don’t vary.

Closed-end lease

A contract that allows you to lease a vehicle for a set period of time.

Multiple Choice

Closed End Lease

• A contract that allows you to lease a vehicle for a set period of time.

• A contract that allows you to lease a vehicle for a set period of time and have the option to purchase it at the end for the remainder of the balance.

• Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.

• An agreement for the use of property, such as a building or vehicle, usually on an annual basis.

Open-end lease

A contract that allows you to lease a vehicle for a set period of time and have the option to purchase it at the end for the remainder of the balance.

Multiple Choice

Open End Lease

• Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.

• The amount you pay each year for insurance coverage.

• A contract that allows you to lease a vehicle for a set period of time and have the option to purchase it at the end for the remainder of the balance.

• A contract that allows you to lease a vehicle for a set period of time.

Rent

Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.

Multiple Choice

Rent

• A contract that allows you to lease a vehicle for a set period of time and have the option to purchase it at the end for the remainder of the balance.

• An agreement for the use of property, such as a building or vehicle, usually on an annual basis.

• A contract that allows you to lease a vehicle for a set period of time.

• Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.