Ch. 13 Purchasing a Car Review

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.

Why should trade-in prices and vehicle prices be negotiated separately?

• Less tax is paid if they are done separately.purchase.

• It is illegal to negotiate them together.

• Consumers often get a better deal that way.

• They should not be negotiated separately as it makes up one purchase.

The _____ contains a list of residual values of leased cars.

• American Automotive Almanac

• Automotive Value Guide

• American Automotive Leases Handbook

• Automotive Lease Guide

The _____ contains a list of residual values of leased cars.

• American Automotive Almanac

• Automotive Value Guide

• American Automotive Leases Handbook

• Automotive Lease Guide

The FTC Used-Car Rule does not apply to _____.

• new-car dealerships

• private sellers

• auto superstores

• used-car dealerships

Which of the following is an expense that is not actually paid, but can represent a sizeable amount of money?

• fuel

• depreciation

• registration

• maintenance

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.

When purchasing a used car, it is a good investment to purchase a(n) _____.

• air purifier

• upgraded battery

• VIN history report

• anti-corrosive sealant

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.

Which of the following is true regarding vehicle options?

• Additional safety options are free, but convenience options are not.

• The US Automotive Administration regulates what is considered "standard."

• Standard options come at an increased cost.

• Different makes and models come with different sets of standard options.