FIN 110 Lecture Notes - Lecture 2: Vehicle Insurance, Consumer Reports, Alternative Financial Service
Document Summary
Depreciation the decline in the value of an asset (your car) over time. Incremental auto insurance premiums the cost of adding a vehicle to your existing policy. Then you multiply the gallons per year by the average price per gallon to get the annual fuel cost. Reliability consumer reports often provide reliability reports on vehicles. Don"t" negotiate or go into a salesperson"s office if you are only shopping. Only test drive cars you are serious about buying. Gross capitalized cost the value of the vehicle. this should be negotiated before discussing the lease price. Up-front fee you may be required to pay an acquisition fee which covers the cost of running your credit report. Dealer"s invoice price- the price that a dealer pays to purchase a new vehicle from a manufacturer. Depreciation- the decline in value of an asset over time due to wear and tear, obsolescence, and competitive factors.
