Chp 13 Purchasing a Car Lesson

Multiple Choice

A certified used car...

• The purchase price displayed on a vehicle as its selling.

• Previously owned vehicle that has received a thorough mechanical inspection.

• Vehicle that has serious mechanical problems that the manufacturer has been unable to fix.

Multiple Choice

What is an auto superstore?

• A large car dealership that sells only trucks

• A small car dealership that sells inspected luxury cars.

• Sells new and used vehicles that are inspected, serviced and warranted.

• Dealership that specializes in only new vehicles

Multiple Choice

Decrease in the value of property as a result of age and usage.

• depreciation

• gap insurance

• capitalized cost

• sticker price

Multiple Choice

A unique number assigned by the automobile industry and used to identify an individual auto.

• vehicle identification number (VIN)

• manufacturer's suggested retail price (MSRP)

• Buyers Guide sticker

• sticker price

Multiple Choice

Requires a seller or manufacture of a defective vehicle either to replace or repair it or refund the buyer’s money.

• FTC Used Car Rule

• Truth in Lending Act

• Lemon Law

• Buyers Guide Sticker

Multiple Choice

Which of the following is true regarding lemon laws?

• They do not apply to trucks, only cars.

• They do not apply to used vehicles.

• The help received under lemon laws is automatic and straightforward.

• The problem must be well documented, as well as the attempts to fix it.

Multiple Choice

The FTC Used-Car Rules requires which of the following to be displayed on the Buyers Guide sticker?

• A description of warranty coverage or lack of it.

• A description of how many previous owners the car had.

• A description of where the car was manufactured.

• A description detailing for how much the car was previously sold and repurchased.

Multiple Choice

Which of the following is true regarding the automobile marketplace?

• The automobile marketplace offers many different ways for consumers to shop.

• The automobile marketplace favors sellers and offers no recourse for buyers who have been cheated.

• The automobile marketplace is an example of a monopoly.

• The automobile marketplace offers very few options.

Multiple Choice

Feature available for a particular car, such as safety, performance, and fuel economy.

• options

• warranty

• style

Multiple Choice

The _____________ is the price displayed on a vehicle as its selling price.

• sticker price

• tag

• manufacturer's suggested retail price (MSRP)

Multiple Choice

For new cars, the sticker price is the __________________, which is recommended by the manufacturer.

• sticker cost

• manufacturer's supposed regular price (MSRP)

• manufacturer's suggested retail price (MSRP)

Multiple Choice

Common sources of car loans include auto dealers, banks, credit unions, and finance companies.

• True

• False

Multiple Choice

What does leasing a car mean?

• Paying a monthly car payment to eventually pay-pff and own a car.

• Paying a monthly car payment for a set amount of time to eventually return the car.

Multiple Choice

What do you need to know about buying a car?

• How to select the right car

• The costs associated with having a car

• How to obtain suitable insurance

• All of the above

Multiple Choice

Is it important to test drive a car?

• No, you shouldn’t worry about it

• Yes, you should see if you look cool in the car

• Yes, you need to test drive to get a feel for the car and identify any obvious problem

• No, the seller has told you everything you need to know