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Rebate
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Also referred to as an incentive, customer's incentive, or manufacturer's rebate. This is a reduction on the price of a vehicle from the manufacturer and is used by the manufacturer to attract potential customers.
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Lessor
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Refers to the company providing the lease to a person for temporary use of a vehicle in exchange for periodic lease payments.
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Bodily Injury Liability Coverage
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Required by most states, this coverage provides coverage for any injuries the policyholder or named insured causes to another person.
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Driver Education
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Refers to state accredited educational course consisting of a minimum of 30 hours of professional classroom instruction.
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8-Cylinder Engine
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An engine that contains eight internal combustion cylinders, most commonly in a V-shape with four cylinders per side.
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Customer Incentive
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See Rebate.
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Buyer
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The person who purchases a vehicle. The individual is primarily liable (legally responsible) for repayment of the loan and has ownership rights in the vehicle.
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Section Width
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The distance from the outermost point of the inner and outer sidewalls of a tire that is inflated but not under a load.
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Underwriter
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Individual responsible for policy coverage determinations.
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Dealer Holdback
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Term refers to the amount, usually 2 to 3 percent of the MSRP, that the manufacturer gives to the dealer. This allows the dealer to sell the vehicle at dealer cost but still make a small profit from the manufacturer.
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Roadside Assistance
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Coverage that provides services such as towing, locksmith service, battery jump-start and flat tire change to policyholders who choose the coverage for an additional premium if it is not already included in their insurance policy.
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Term
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Refers to the period of time covered in the contract. For example, in a three-year fixed loan, the term is three years or 36 months.
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Endorser
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Term refers to someone who signs over ownership of property, such as an auto, to another.
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Application
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Refers to a document that an applicant for credit fills out and submits for evaluation of creditworthiness. Includes written personal and financial information.
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Insurance Score
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Refers to confidential ratings used by some insurers in some states when making a determination to insure an applicant. Used as a ratings tool.
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Full Disclosure
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Full disclosure is the term that describes the leasing company's, and dealership's, responsibilities to disclose all information about a lease or vehicle, including all fees, taxes, and lease terms, prior to the signing of the lease.
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Department of Motor Vehicles
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Also called the DMV. This is the state agency responsible for overseeing the process of registering, titling and licensing vehicles for a particular state.
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Factory-to-Customer Incentive
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Incentives provided by the manufacturer and passed on to the consumer to assist in the clearance sales of vehicles from dealerships.
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Salvage Title
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A salvage title is a title attached to a vehicle that has already been deemed a loss by an insurance company, and the vehicle is typically sold to a salvage yard for parts, or auctioned off to a winning bidder to be restored to a safe driving condition. Vehicles with salvage titles are not typically re-leased, and should be avoided by consumers.
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Agent
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An individual who acts as a representative of the auto insurance company and sells insurance, typically on a commission basis. Agents may be exclusive or non-exclusive.
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