PERSONAL FINANCE CHAPTER 23

Lemon Laws

exist in many states and protect consumers from the consequences of buying a defective car

dealer add-ons

high-priced, high-profit dealer services that add little or no value

oxidize

when paint permanently loses its color and shine because of chemical reactions to the air

Vehicle Identification Number (VIN)

An alphanumeric number that identifies each vehicle manufactured or sold in the United States.

Classic Cars

Older vehicles in excellent condition that appreciate if valued as collectors' items.

Preapproval

The process of getting a new- or used-car loan prearranged through your bank or credit union.

lemon

a car with substantial defects that the manufacturer has been unable to fix after repeated attempts

car title

a legal document that establishes ownership of the vehicle

Car Detail

a service provided by specialists who clean and polish the outside, along with cleaning and treating the interior

polishing compound

a substance that can smooth out surface scratches, scuffs, and stains

car-buying service

allows you to choose the vehicle features you want, and a professional car buyer takes over the price negotiation for you

car registration

license tag fee that must be paid annually

sticker price

manufacturer's suggested retail price listed on a sticker in a new car's window

FTC Rule

requires that dealers fully disclose to buyers what is and is not covered under warranty for the used vehicle

invoice price

the price the dealer paid for the car

upholstery

the seat-covering material

hybrid

type of vehicle that uses alternate energy sources

vehicle emission test

verifies that a vehicle meets the minimum clean-air standards