CAR SALES COMPREHENSIVE EXAM STUDY
GUIDE WITH COMPLETE SOLUTIONS
●● Acquisition Fee
Answer: A fee charged by the dealer for initiating a lease; ostensibly
covers the costs of processing the lease—credit reports and insurance
verification, for example—but is in actuality pure profit. Although many
fees associated with a lease are negotiable, this one is generally
unavoidable.
●● Balloon Payment/Balloon Loan
Answer: A loan that pays off only a portion of a vehicle during its term
and demands a large sum—the "balloon"—to be paid at the end of the
loan.
●● Make
Answer: Refers to the brand (or nameplate) of vehicle ex. Ford, Honda,
Chrysler, Toyota, etc.
●● Bump
Answer: The difference between the rate a dealer pays for financing on a
loan or a lease (called the Buy Rate) and the rate at which they sell the
financing to you (the Sell Rate)—typically around one percent. Dealers
generally don't disclose this bump, so do your homework on the actual
,rate being offered by the manufacturer or finance company and negotiate
to reduce or eliminate the bump. Also known as a Spread.
●● Model
Answer: Refers to a specific vehicle name within a make ex. Ford
MUSTANG, Honda ACCORD, Toyota CAMRY
●● Manufacturer
Answer: The builder of a vehicle and many consist of one or several
makes of vehicle ex. Ford (Ford, Lincoln), General Motors (Chevrolet,
Buick, GMC, Cadillac), Toyota (Toyota, Lexus), Volkswagen
(Volkswagen, Porsche, Audi, Lamborghini, Bugatti, Bently)
●● MSRP
Answer: Manufacturer's suggested retail price also known as "retail
price" or "window sticker". This is what is listed for the basic price and
all options on the Monroney Sticker
●● Price
Answer: Represents the price you pay for the vehicle when all is said
and done, but there is no hard and fast rule
●● Processing Fee
, Answer: A fee a dealer may use at their discretion. It does not reflect any
particular cost & depending on what state you're in, may have mandated
upper limit
●● Protection Package
Answer: Another set of forced items, like an appearance package,
although the mix of items may vary (or be the same) and can include:
-VIN (vehicle identification number) etching on the engine compartment
-Trunk Tray (basically a floor mat for your trunk)
-Rust proofing
-Paint Sealant
-Vehicle undercoating
-Fabric protection
●● Qoute
Answer: When a dealer gives an amount they'd offer for a vehicle. This
may not include all the costs you'd ultimately have to pay (i.e. state fees
such as tax, tags, and title, or the destination charge, or other
miscellaneous regional fees or mandatory add-ons from the dealer)
●● Style (Trim)
Answer: Refers to the trim or equipment level of a particular model of
vehicle ex. EX, Limited, Supercab
GUIDE WITH COMPLETE SOLUTIONS
●● Acquisition Fee
Answer: A fee charged by the dealer for initiating a lease; ostensibly
covers the costs of processing the lease—credit reports and insurance
verification, for example—but is in actuality pure profit. Although many
fees associated with a lease are negotiable, this one is generally
unavoidable.
●● Balloon Payment/Balloon Loan
Answer: A loan that pays off only a portion of a vehicle during its term
and demands a large sum—the "balloon"—to be paid at the end of the
loan.
●● Make
Answer: Refers to the brand (or nameplate) of vehicle ex. Ford, Honda,
Chrysler, Toyota, etc.
●● Bump
Answer: The difference between the rate a dealer pays for financing on a
loan or a lease (called the Buy Rate) and the rate at which they sell the
financing to you (the Sell Rate)—typically around one percent. Dealers
generally don't disclose this bump, so do your homework on the actual
,rate being offered by the manufacturer or finance company and negotiate
to reduce or eliminate the bump. Also known as a Spread.
●● Model
Answer: Refers to a specific vehicle name within a make ex. Ford
MUSTANG, Honda ACCORD, Toyota CAMRY
●● Manufacturer
Answer: The builder of a vehicle and many consist of one or several
makes of vehicle ex. Ford (Ford, Lincoln), General Motors (Chevrolet,
Buick, GMC, Cadillac), Toyota (Toyota, Lexus), Volkswagen
(Volkswagen, Porsche, Audi, Lamborghini, Bugatti, Bently)
●● MSRP
Answer: Manufacturer's suggested retail price also known as "retail
price" or "window sticker". This is what is listed for the basic price and
all options on the Monroney Sticker
●● Price
Answer: Represents the price you pay for the vehicle when all is said
and done, but there is no hard and fast rule
●● Processing Fee
, Answer: A fee a dealer may use at their discretion. It does not reflect any
particular cost & depending on what state you're in, may have mandated
upper limit
●● Protection Package
Answer: Another set of forced items, like an appearance package,
although the mix of items may vary (or be the same) and can include:
-VIN (vehicle identification number) etching on the engine compartment
-Trunk Tray (basically a floor mat for your trunk)
-Rust proofing
-Paint Sealant
-Vehicle undercoating
-Fabric protection
●● Qoute
Answer: When a dealer gives an amount they'd offer for a vehicle. This
may not include all the costs you'd ultimately have to pay (i.e. state fees
such as tax, tags, and title, or the destination charge, or other
miscellaneous regional fees or mandatory add-ons from the dealer)
●● Style (Trim)
Answer: Refers to the trim or equipment level of a particular model of
vehicle ex. EX, Limited, Supercab
