Subvented Interest Rate

Definition

A below-market interest rate (e.g., 0% or 0.9%) subsidized by the auto manufacturer to incentivize sales.

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ABS (Anti-lock Braking System)

A safety system that prevents wheels from locking up during braking, allowing the driver to maintain steering control.

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A drivetrain that employs a front, rear and center differential to provide power to all four wheels of a vehicle.

Chassis

The load-bearing framework of an artificial object, which structurally supports the object in its construction and function.

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The decline in a car's value over time.

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