Test 3

• Annual Percentage Rate (APR)?

  A number calculated by taking into account the total cost of a loan, including what the borrower will pay in interest; this makes it easier to compare different loan offers.
• Coupe?

  A car with two front seats and a smaller backseat for occasional passengers. It usually has two doors but sometimes has four.
• Collision Insurance?

  Insurance that covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can’t be repaired. This type of coverage is usually optional.
• Lease?


  An agreement that gives one party the use of a commodity for a specified period of time for a specified price.
• Liability Insurance?

  Insurance that compensates an injured party up to a certain amount outlined in the policy statement. This type of insurance ensures you will be able to pay for any damages you cause. 
• Loan?

  An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus the lending fee, called interest. Payments are normally made over a series of months.
• Minivan?

  A car that is designed for maximum passenger space. It has multiple rows of seats but often doesn’t offer significant towing power or off-road capability.
• No-fault Auto Insurance?

  A system under which drivers must have coverage for their own

  protection. It also limits the damages for which an injured party can sue. Under this system, after an accident both parties would be covered by their own insurance policies. Only some states use this system.

• Sedan?

  A common type of car that has two rows of seats and a trunk. It can have two doors or four doors, but the backseat should be able to seat adults comfortably.
• Sport Utility Vehicle (SUV)?

  A car with multiple rows of seats and significant towing power. Most also have the ability to drive off-road.
• Comparison Shopping?

  Looking for the same product in multiple stores to find the best price or the best product.
• Contract?

  An agreement between a buyer and a seller.
• Impulsive buying?


  Buying something you don't really need on a whim.
• Primary need?

  Something that you must have to live from day to day, like food, shelter, and clothing.
• Rebate?

  A partial refund that usually requires an action, such as mailing in a certificate of purchase.
• Recall?

  The voluntary or involuntary removal of a dangerous product from the market.
• Secondary Need?

  Something that can help you improve your day to day life, like a computer, car, or television.
• Value?

  What you think a purchase is worth to you personally, taking into consideration how it will help to improve your life.
• Want?

  Something that won’t help you live from day to day, like jewelry, video games, and soda. Once you have met your primary and secondary needs, you can try to make room for some of these things in your budget.
• Warranty?

  The seller’s promise to fix or replace the product if something goes wrong.