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Automotive dictionary (encyklopedia)

Dictionary of terms and abbreviations for cars (automobiles), motorcycles (bikes),
bicycles, boats, engines, machines, machining and car fixing.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Base interest rate

The interest paid on the usage of the vehicle during a lease. It is the "cost" of a lease before factoring in discounts, fees, and penalties and is not directly comparable to the APR for a loan. Lowering the base interest rate is one of the methods manufacturers use to subsidize leases. The phrase "money factor" measures the same cost and can be converted into a base interest rate. For example, to convert a money factor of 0.00276 into an approximate base interest rate would multiply the money factor by 24. The result would be 0.0662 or 6.6%.
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Car Insurance FAQs #1

What are Car Financial Responsibility Laws?

This is the law that says you have to prove that you are financially able to pay for anything you may be responsible for while driving your car. The easiest way of showing this is by having car insurance and that is what the majority of people do to comply with this law. Some states to have other ways that one can show financial responsibility such as giving a large cash deposit for the DMV.

What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car?

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