Chapter 9 Vocab

Question 1

Base Price

Answer 1

Starting price of car

Question 2

Options

Answer 2

Extras for convenience, safety, or appearance

Question 3

Destination Charge

Answer 3

Cost of shipping the vehicle from the factory to the dealer

Question 4

Liability Insurance

Answer 4

If you get in a crash and you are responsible

Question 5

Comprehensive Insurance

Answer 5

Protects you from losses due to fire, theft, vandalism, etc.

Question 6

Collision Insurance

Answer 6

Repairs your car if it’s in an accident

Question 7

Deductible Clause

Answer 7

Amount you are required to pay for any repair bill

Question 8

Variable Costs

Answer 8

Gasoline and tires

Question 9

Fixed Costs

Answer 9

Vehicle insurance, registration fees, and depreciation

Question 10

Depreciaton

Answer 10

A decrease in the value of your vehicle because of its age and condition

Question 11

Closed End Lease

Answer 11

You make a specified number of payments, return the vehicle, and owe nothing

Question 12

Open End Lease

Answer 12

You can buy the vehicle for its residual value (the expected value of the vehicle at the end of the lease period)