Hyperbole
A hyperbole is an over exaggeration. In this sample the speaker is over exaggerating how royal and fancy the car is by having the stoplights show a sign of respect by curtsying. Irony is when something happens or is said that is the opposite of what actually happens or is meant. Sarcasm is a verbal form of irony. Sarcasm should be immediately eliminated because all sarcasm is verbal irony. Irony can not be eliminated for the same reason because not all irony is sarcasm. An understatement is saying that something is worse than it actually is.