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Aftermarket Parts
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Parts or accessories that are not a part of the original factory-installed parts.
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Aspect Ratio
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The aspect ratio of a tire is a form of measurement for the sidewall. It is the height of a tire, measured from the bead to the edge of the tread, in relation to the section width. It is typically listed as the middle number in the tire size. For example, a tire with a size of P205/50R16 has a section width of 205 millimeters and the sidewall height is 50% of the section width. This is the aspect ratio.
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No-Fault Insurance
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Insurance that covers a stated risk regardless of who was at fault in the event of a loss that is covered under the policy.
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Investor
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Term refers to a lender's money sources, or where the lender gets its money.
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Principal Driver
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The person who drives the car most of the time.
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Trade-in Value
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Value of a used vehicle that a customer turns into the dealer as part of a purchase or a new or used vehicle.
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Default Charge
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The default charge refers to whatever penalty charge the dealership or lease company decides on for a late monthly lease payment. This charge varies from lease company to lease company, and can actually increase with each missed payment.
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Deficiency
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The deficiency refers to the difference in the amount left owed on a leased vehicle and its current cash value as judged by the leasing company (typically the lease company will get this value from NADA or Kelley Blue Book). Most consumers will want to protect themselves from deficiency by purchasing GAP insurance. Basically, in the event of a major accident the insurance company will pay the current cash value of the vehicle. However, if that value is less than the amount still owed, you have a deficiency.
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National Insurance Crime Bureau (NICB)
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A nonprofit organization that partners with law enforcement and other insurers to identify, detect, and prosecute insurance criminals.
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Claim Examiner
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Individual who examines auto claims. See Adjuster.
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Inspection
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Refers to the physical and mechanical evaluation of an automobile.
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Regulation M
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This is another term used to describe the Consumer Leasing Act, which went into effect January 1, 1998. Written by the federal government, it protects the consumer by forcing full disclosure from the lessee.
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Equal Credit Opportunity Act
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Also abbreviated as ECOA, this is a federal law requiring lenders and creditors to make credit available equally to all persons without discriminating based on race, color, religion, national origin, age, sex, marital states, or receipt of income from public assistance sources.
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Radial
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A particular type of tire construction which utilizes beads that run perpendicular (90 degrees) to the direction of travel, stretched from bead to bead. They are typically reinforced with steel or nylon belts.
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Wear-and-Tear Charge
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This is the charge allotted to the lessee at lease end, for any damages or changes in the vehicle that are considered out of the norm or unreasonable. These changes and charges are usually listed in the lease agreement, and are determined at lease end by either the leasing company, dealership, or both. Wear-and-tear charges may be offset by the consumer by requesting to add an additional amount to the monthly payment to cover any additional fees that may fall under the excessive wear and tear clause.
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Asset
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Anything that has a monetary value owned by an individual. Assets may include cash, real estate, personal property, and enforceable claims against others (including, but not limited to, mutual funds, stocks, and bank accounts).
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Misrepresentation
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A misstatement of facts when applying for insurance coverage, either oral or written false statements.
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Contact Patch
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The contact patch, also known as the footprint of a tire, is the amount of tire in actual contact with the road at any given time.
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Breach of Contract
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Refers to the violation of a legal obligation. Failure to live up to the terms of the loan contract.
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Liability Investigation
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The process of information gathering in order to determine the cause of an automobile accident.
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