THS Business Math Chapter 9 Vocab

Flashcard maker : Lily Taylor
sticker price
includes three charges
base price
the price of the engine, chassis, and any other standard equipment for a particular model
options
Extra equipment for convenience, safety, or appearance
destination charge
cost for shipping
dealer’s cost
price the dealer actually pays for a vehicle. Usually expressed as a percent of the base price.
used-vehicle guide
monthly published guides that give the average prices for used vehicles that were purchased from dealers during the previous month
liability insurance
coverage provides financial protection to the policy holder
collision insurance
insurance that pays for damage caused by a collision incident
comprehensive insurance
insurance that pays for the damage to vehicle that was in a fire, vandalism, etc.
deductible clause
this is a clause in an insurance policy that requires the insured to pay a certain amount to cover repairs before the insurance company pays
annual premium
amount you pay each year for insurance coverage
variable costs
cost of producing a product that varies directly with the number of units produced
fixed costs
costs remains about the same regardless of how many miles you have driven.
depreciation
decrease in value from one year to the next
lease
Make monthly payments to the leasing company, dealer, or bank
close-end lease
which is a contract that allows you to use a vehicle for a set time period by making a specified number of payments
open-end lease
a contract allowing you the use of property, such as a vehicle, for a set time period by making a specified number of payments. At lease end, you can purchase the item for its residual value.
rent
money you pay for the use of property, often on a monthly, weekly or daily basis

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