THS Business Math Chapter 9 Vocab – Flashcards
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sticker price
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includes three charges
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base price
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the price of the engine, chassis, and any other standard equipment for a particular model
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options
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Extra equipment for convenience, safety, or appearance
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destination charge
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cost for shipping
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dealer's cost
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price the dealer actually pays for a vehicle. Usually expressed as a percent of the base price.
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used-vehicle guide
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monthly published guides that give the average prices for used vehicles that were purchased from dealers during the previous month
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liability insurance
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coverage provides financial protection to the policy holder
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collision insurance
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insurance that pays for damage caused by a collision incident
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comprehensive insurance
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insurance that pays for the damage to vehicle that was in a fire, vandalism, etc.
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deductible clause
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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
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annual premium
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amount you pay each year for insurance coverage
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variable costs
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cost of producing a product that varies directly with the number of units produced
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fixed costs
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costs remains about the same regardless of how many miles you have driven.
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depreciation
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decrease in value from one year to the next
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lease
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Make monthly payments to the leasing company, dealer, or bank
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close-end lease
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which is a contract that allows you to use a vehicle for a set time period by making a specified number of payments
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open-end lease
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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.
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rent
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money you pay for the use of property, often on a monthly, weekly or daily basis
