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Post-Collision Safety System
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The Post-Collision Safety System is an all-encompassing term that includes the vehicle's safety devices such as airbags, head restraints, and seat belts.
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AWD
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This is the abbreviation for all-wheel drive vehicles. Unlike 4WD vehicles, which can usually switch back to 2WD, all-wheel drive vehicles utilize all four wheels as drive wheels 100% of the time.
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Automobile Liability Insurance
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Provides protection for the insured against loss arising out of legal liability to third parties. Also insurance providing coverage for any legal liability of the policyholder from injuries to other persons or damage to their property.
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Closed-End Lease
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This is a lease that states a vehicle's residual value. Basically, it states what the value of the vehicle will be at the end of the lease. If the vehicle turns out to be worth less than this value at the end of the lease, you will not owe an additional lump sum at the end of the term. Most leases are organized in this fashion.
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Insolvent
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Refers to the inability of a person to pay his/her debts.
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Quote
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Refers to a price for a specific product, such as a car, or a service, loan rate, service contract, insurance policy or other item. Consumers can shop for the best quotes for auto loan rates, cars, insurance coverage, etc.
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Auto Test Drive
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Part of the car-buying process during which the potential buyer takes the vehicle out to experience the overall ride, handling, comfort and performance, generally to see if the vehicle meets his/her needs and expectations.
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Grace Period
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Refers to the amount of time allowed for an insured to pay a required premiium before the policy lapses.
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ABS
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Anti-Lock Brake Systems employ a safety sensor on each wheel that allows the vehicle to maintain better traction in the event of a slide.
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Factor-to-Dealer Incentive
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A discount or rebate offered by the manufacturer to the dealer for the purpose of moving slow-selling cars or to reduce inventories, particularly before the start of a new model year.
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Cash Price
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Refers to the price the seller agrees to sell the vehicle or property or service.
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Cupping
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Cupping refers to an uneven tread wear that can be the result of improper inflation, poor vehicle alignment, or a manufacturing defect in the tire itself.
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Loan Term
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Refers to the length of time of the loan. Usually, this is expressed in months, as in 24, 36, 48, 60 and 72 months.
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Loan-to-Value Ratio
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Also referred to as LTV, this is a ratio used to determine the amount of money a lender will make available to a borrower, based on the value of a vehicle. The Loan-to-Value Ratio is calculated by dividing the vehicle's sales price (or appraised value) by the amount of the loan.
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Total Sales Price
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This is the total price of a purchase made on credit, including any down payment; equal to the total of payments plus applicable down payment.
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Effective Gross Income
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Total of normal annual income that is regular, not including overtime pay. Income may come from several different sources.
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Light Truck Tires
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A type of tire manufactured specifically for use on light trucks. These tires are not recommended for use on heavy-duty trucks, vans, or vehicles larger than 3/4-ton pickups. These tires are typically labeled by an LT after the size.
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Collection
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Refers to efforts to collect on a debt due that is in delinquency, including filing any necessary legal notices to repossess the property, such as a car.
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RWD
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An acronym for Rear Wheel Drive. This describes a vehicle that utilizes the rear wheels as the main drive wheels for the vehicle.
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Hydroplane
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This is the action of the tire losing its traction to the road, thanks to water on the surface of the road. Water accumulates under the contact area of the tire, pushing the tire upward and off the surface of the road. The resulting action is the tire creating a water ski effect on the road, reducing vehicle control for the driver.
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