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Define Buy-Back

buy-back. An arrangement offered by some car manufacturers in Europe that allows tourists the use of a new car for a few weeks or months. The tourist gets what is, in effect, a long-term rental for a reasonable price. The manufacturer receives back a low-mileage car that can then be imported into the United States as a used car at a lower tariff rate. In some cases, the tourist has the option to have the car shipped home for his or her own use, again at a lower tariff rate.

The term is also used to refer to the car itself.

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