Vocabulary
the money you make before taxes and deductions
What is Gross Pay
This is the interest rate for borrowing money
Annual Percentage Rate (APR)
borrowing monet for a car from a bank for 36, 48, 60 months
financing
amount paid or earned for the use of money
interest
What is the VIN
Vehicle Identification number; ID with letters and numbers that identifies ownership and history of the vehicle.
an account that holds our money and earns interest
Savings account
A piece of paper that tells me I own the car (typically do not get until you are finished pay for it).
Car Title
a piece of paper that you get (like a receipt) that tells me what I paid for the car.
INVOICE
% percentage that is paid or charged for the use of money
interest rate
Money for your old car that you can put towards your new car.
expenses that vary based on use
variable expense
Things the dealer adds to make the price of the car higher. You can usually get some of these removed.
dealer add-ons
The sticker price of the car that is displayed on the window. The amount the car is being sold for. This is often a suggestion!!
Manufacturers suggest retail price (MSRP)
money that you borrow that is paid back with interest...not a credit card
Loan
What is a warranty?
A plan that is attached to your car that will fix/repair issues with the car that arise. Sometimes it is 3 year or 36,000 miles but there are other types.
a card used when you don't have the money available; must be paid back and earns interest
Credit card
The amount of money the dealer pays for the car
Dealer invoice price
How many miles a car can travel on 1 gallon of gas
Miles per gallon (MPG)
original amount borrowed
principle
what is APR
annual percentage rate
taking money out of your checking account
withdrawal
the car lowers in value as soon as you buy the car
depreciation
a yearly fee that identifies who the many person driving the car is. The fee is 36$ per year
percentage rate that varies
variable rate
What is one thing you learned about buying a car; budgeting and checking accounts; and interest
answers vary