Podcast
Questions and Answers
What does Gap Insurance pay for?
What does Gap Insurance pay for?
What is an Option in the context of car features?
What is an Option in the context of car features?
A feature available for a particular car, such as safety, performance, and economy.
What does MSRP stand for?
What does MSRP stand for?
Manufacturer's Suggested Retail Price.
What is the purpose of the Buyer's Guide Sticker?
What is the purpose of the Buyer's Guide Sticker?
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What is a Certified Used Car?
What is a Certified Used Car?
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What does the Truth in Lending Act require?
What does the Truth in Lending Act require?
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What is a Vehicle Identification Number (VIN)?
What is a Vehicle Identification Number (VIN)?
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What is depreciation?
What is depreciation?
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What is an auto superstore?
What is an auto superstore?
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What is a Lemon in automotive terms?
What is a Lemon in automotive terms?
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What is the FTC Used-Car Rule?
What is the FTC Used-Car Rule?
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What is a sticker price?
What is a sticker price?
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What do Kelly Blue Book and Edmunds provide?
What do Kelly Blue Book and Edmunds provide?
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What is a Car Warranty?
What is a Car Warranty?
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What does the Lemon law require?
What does the Lemon law require?
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What does 'as-is (no warranty)' mean?
What does 'as-is (no warranty)' mean?
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What does warranty generally mean in a car sale?
What does warranty generally mean in a car sale?
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What are fixed expenses?
What are fixed expenses?
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Study Notes
Car Purchasing Terms and Definitions
- Gap Insurance: Covers the difference between the amount owed on a car loan and the car's actual cash value if the vehicle is stolen or totaled.
- Option: A specific characteristic or feature of a car that enhances safety, performance, or fuel efficiency.
- Manufacturer’s Suggested Retail Price (MSRP): The price recommended by the vehicle manufacturer, often displayed on the vehicle's window.
- Buyer's Guide Sticker: A label found on used cars that outlines warranty coverage details or indicates the absence of a warranty.
- Certified Used Car: A vehicle that has undergone thorough mechanical and physical inspections by a dealer and meets certain quality standards.
- Truth in Lending Act: U.S. law mandating that lenders provide clear and complete information about credit terms and costs to borrowers.
- Vehicle Identification Number (VIN): A unique code assigned to each vehicle for identification purposes, crucial for registration and insurance.
- Depreciation: The reduction in a vehicle's market value over time due to wear, age, and usage.
- Auto Superstore: A dealership offering a wide range of both new and used vehicles that have been inspected, serviced, and come with warranties.
- Lemon: A car with significant mechanical issues that the manufacturer fails to repair after several attempts within a reasonable time frame.
- FTC Used-Car Rule: Regulations requiring dealers to disclose the specifics of what is covered and not covered by a used car's warranty.
- Sticker Price: The displayed selling price of a vehicle, often used as a starting point for negotiations.
- Kelly Blue Book and Edmunds: Publications providing estimates of resale values for new and used cars, essential for pricing and valuation.
- Car Warranty: A written guarantee from the dealer promising to cover repairs for a specified period if issues arise with the vehicle.
- Lemon Law: Legislation that mandates manufacturers or sellers of defective vehicles to replace, repair, or refund the purchase price to the buyer.
- As-Is (No Warranty): Indicates that the buyer assumes all responsibility for any flaws and repairs after the sale of the vehicle.
- Warranty: A checked box signifies that the dealer will cover repair costs for the vehicle for a defined period.
- Fixed Expenses: Regular, predictable costs included in a monthly budget, crucial for maintaining financial stability when purchasing a vehicle.
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Description
Explore essential terms related to purchasing a car in this flashcard quiz. Learn about important concepts like gap insurance, options, and MSRP. This quiz is designed to help you understand the financial aspects of buying a vehicle.