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Upside Down
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A situation in which the purchaser owes more money on a trade-in than the dealership is willing to give. The difference is applied to the loan amount.
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LED
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An acronym for Light-Emitting Diode, it describes a particular type of light bulb being used on vehicles. LEDs are more efficient and last longer than traditional bulbs.
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Inner Tube
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The rubber balloon in the shape of a long circular tube which is inserted into a tire to retain air pressure. Most automotive tires are tubeless.
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Tread Blocks
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The large sections of tread which run perpendicular to the line of travel and provide an ample amount of the tire's traction.
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V8
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This is the term which refers to a V-shaped engine with eight cylinders total, four per bank lined up in a row. V8 engines have two separate cylinder heads.
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Quote
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How much a policy premium will cost based on information provided.
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Winter Tires
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Tires manufactured specifically for use in winter conditions. These tires possess more aggressive tread than normal all-season tires, and also come studded at times.
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Monthly Payment
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The amount due to be paid at regular monthly intervals, by the specified due date.
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Plus Sizing
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The act of increasing the wheel diameter of a vehicle beyond its original equipment size. This should not affect the overall diameter of the tire/rim assembly as this may cause problems in vehicle speed readings, transmission shifting, and suspension clearance.
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Economic Loss
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Refers to monetary loss incurred by an individual as a result of an accident or injury.
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Finance Charge
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This is the cost of consumer credit, expressed as a dollar amount.
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Marketable Title
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Refers to a title that has no encumbrances, liens, and is free and clear. A marketable title is one that allows a vehicle owner to sell the property freely to others and which buyers will accept without objection.
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Retail Blue Book Value
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Term refers to a used auto's value in a specific market area. Also see Book Value.
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Master Lease
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This is the term that refers to one lease for many vehicles. Corporations, rental companies, and delivery companies are the most common users of the Master Lease. Dealerships and/or manufacturers may provide discounted rates and mileage fees for companies willing to take part in a Master Lease.
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Chafer
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A rubber-coated material that is typically used on beads to prevent damage during removal and installation. It is stronger than normal rubber and resists abrasion.
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OTR
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An acronym for Off-the-Road, OTR is a tire classification that describes a particular type of tire used on emergency, construction, and other heavy-duty vehicles.
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Lease Option
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This is another term that refers to the Buy Option. It is an option included in many lease agreements that offer the lessee the opportunity to purchase the vehicle for a set residual value, as determined by the Automotive Leasing Guide, at lease end.
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Tire Deflection
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The deformation of the tire at the point of contact with the road. This is also commonly referred to as sidewall flex.
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All-Risks Policy
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Refers to a type of policy that promises to cover all losses, except those specifically excluded in the policy.
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Purchase Option
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Also referred to as a buy option, Most leases have a clause included that provide an option for the lessee to purchase the vehicle at the end of the lease agreement, or during the lease agreement after a certain number of months have passed. The purchase price is not typically set until the time of sale due to mileage and condition variables.
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