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Run-Flat
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A type of tire that permits travel with no internal psi for a limited mileage range at a limited speed.
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Business Lease
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This term is used to describe a vehicle that is being leased for use strictly by a business. Generally, leasing a vehicle is more beneficial for a business since the leasing company actually maintains ownership of the vehicle. It provides tax advantages in the fact that several areas of the lease may be deducted from the business's taxes, such as insurance, maintenance, payments, and repair not covered by the vehicle's warranty. Also called a commercial lease.
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Warranty
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A guarantee. In auto insurance, replacement parts and repair work is guaranteed to be the quality represented and will be replaced if found to be faulty. Warranty also refers to the insured individual guaranteeing that something is the case.
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Policyholder
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The person or entity named on the policy declarations page.
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EGR
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This is the acronym for Exhaust Gas Recirculation. This is just one part of the emissions system of your vehicle. It re-circulates exhaust gas back through the engine's cylinders to be re-burned, enhancing the efficiency of your fuel.
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Service Description
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The markings located on the sidewall of a tire which indicate its load index and speed rating.
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Due Date
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This is the date in a given month when payment is due on a loan. The due date is set ahead of time and does not vary month to month.
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Manual Transmission
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This refers to a particular type of transmission which must be shifted manually by the driver. Manual transmissions are operated by way of a clutch pedal and shift knob in the vehicle's cabin.
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Insured
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Individual or organization covered by an insurance policy.
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No Money Down
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Seeing as how leases are much more flexible than purchases, thanks to the ownership of the vehicle not actually switching to the lessee, it is typically much easier for leasing companies to offer no money down leases. These are leases that require no taxes, fees, or down payments at the time of lease signing. Several of these charges, however, can be incorporated into other areas, such as the monthly payment, the purchase price at lease end, or assumed within a trade-in allowance.
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Debt
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Refers to the amount of money owed to another party or entity, also accumulated debt, as in mortgage, installment loans, tuition, medical and other outstanding financial obligations.
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Camber
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This is the vertical-axis angle made by the wheels of a vehicle once they are mounted onto the vehicle. It is measured in degrees. A wheel with the top tilted toward the vehicle has a negative camber angle. Tilted away from the vehicle is a positive camber angle.
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MSRP
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See Manufacturer's Suggested Retail Price.
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FWD
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The acronym for Front Wheel Drive. This describes a vehicle that utilizes the front wheels as the main drive wheels for the vehicle.
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Vehicle Quote
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This is the term that refers to the amount of money quoted to a consumer as the actual price of a vehicle. Quotes can be given in person, over the phone, through the mail, or most commonly now, over the Internet. Once a quote is made, the dealership is bound to honor it for a certain duration of time. Most dealerships will honor quotes for up to 30 days, though some will extend this time if there are extenuating circumstances.
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Invoice Price
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See Dealer Invoice.
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Amendment
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A change to a basic automobile policy contract. An amendment alters the policy, while an endorsement adds to the policy.
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Depreciation
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The amount of value which a vehicle loses over a period of time.
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Certificate of Financial Responsibility (CFR)
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See SR-22.
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Black Book
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See Book Value.
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