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Wholesale Book Value
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Refers to the amount a dealership pays for a used auto in markets that are not retail, typically at auctions and transactions with brokers.
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Curb Weight
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The weight of the vehicle when it is completely empty of passengers, fuel, and cargo.
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Primary Insurance
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The first layer of property or liability coverage carried by the insured that provides for benefits up to the policy's limits, regardless of other insurance policies in effect at the time.
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Caster
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This is angle, measured in degrees, of the suspension's vertical axis relative to the vertical axis extending through the center point of the tire, viewed from the side of the vehicle. Also known as the steering pivot axis.
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Broker
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Term refers to an individual who brings parties together and assists in negotiating contracts between them, for a fee.
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Lemon Law
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This is a blanket term used to refer to laws in various states that protect consumers against automobiles found to be persistently defective, that is, the vehicle requires repeated repair (six times) for the exact same problem.
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Reinspection
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Refers to the review of an appraisal or estimate of the work done to a vehicle during or after repairs in order to ensure accuracy of the auto damage repair facility staff and that the work specified in the appraisal or estimate was actually completed.
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4-Cylinder Engine
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An engine that contains four internal combustion cylinders, typically all in a row.
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MPG
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The acronym for Miles Per Gallon. This describes the vehicle's fuel efficiency. It is typically labeled in city, highway, and combined mileage.
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Title
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The legal document showing ownership of a particular vehicle.
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Lease Assumption
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This is the term used when another party takes over a lease from the lessor. The lessee will typically remain the same, and the original lease agreement is usually honored; however, a different faction now has ownership of the leased vehicle and has assumed the role of lessor. Lease assumptions are more common among lease companies that are not affiliated with an auto manufacturer.
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Branded Titles
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Label by and from a state titling agency that includes one of the following comments: not-actual mileage; true mileage unknown; reconditioned, salvage; rebuilt, flood, manufactured buyback; lemon law buyback; warranty return; exceeds mechanical limits; or reconstructed prior collision.
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Upside-down Loan
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An upside-down loan is a loan in which the consumer owes more on a particular vehicle than that vehicle's actual value. This happens most often with loans that possess little to no down payment, and is almost always the case with leases. GAP insurance is there to protect consumers against upside-down loans in the event that the vehicle becomes un-drivable during the loan period.
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Road Hazard
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A type of warranty offered with the purchase of new tires which provides free repair, or pro-rated replacement in the event the tire is beyond repair, in the event it is damaged by foreign objects in the road.
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Bead Seat
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The outermost edges of a rim on either side, where the tire seats. Unlike many tires, a rim has a front and a back. The front of a rim houses the hole for the tire's valve stem.
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Excessive Wear Charge
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A lease term that describes any excessive wear and tear on a vehicle during its lease period. It can include body damage, scratches, upholstery damage, stains, or cracked glass.
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Subsidized Lease
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A lease where the manufacturer chooses to absorb a portion of the cost as an incentive to the purchaser.
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Lease Takeover
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A lease takeover occurs when a new lessee takes possession of the vehicle and the responsibilities of payments. A lease takeover generally does not require a new lease agreement to be drafted, however some variables and stipulations can change depending on the preferences of the new lessee and the lessor. A lease takeover occurs most often when a lessee is either unhappy with a particular vehicle or unable to keep up with the lease payments.
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Lease Factor
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See Money Factor.
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Judgment Rating
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Each insurer uses a rating or rate-making method to evaluate exposure and determine a rate for each individual applicant for insurance.
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