Consumer Purchasing - Buying and leasing

A disadvantage of buying a new car is it loses value faster than a used car. This is called

• Capital gain

• Inflation

• Depreciation

• Amortization

Which is NOT an expense of owning a car?

• Repairs & maintenance

• Gasoline

• License & registration fees

• Utilities

Financing a vehicle has advantages & disadvantages. Which is a disadvantage?

• You need a small amount of money upfront compared to buying the car

• You pay interest and fees on borrowed money

• Your credit score is not taken into consideration

• You have more flexibility to pay the car off over time

All of the following are advantages of leasing a vehicle EXCEPT

• Your monthly payment is typically cheaper

• You own the vehicle after your lease period

• You get a new vehicle more frequently

• Standard maintenance is typically included

It is important to comparison shop when purchasing a car. What does comparison shop mean?

• Always buy from a local dealership

• Take several photos to use for comparison

• Compare the true market value of every vehicle

• Compare the price & quality from different vendors

The _____ of a product is the cost per weight or measure.

• unit price

• cost

• markup

• loss

What is a brick-and-mortar store?

• A retail store that sells construction equipment.

• A retail store that sells directly from a physical location.

• A retail store that supports the economy of the town in which it is located.

• A retail store that also houses corporate offices.

When you are deciding what to buy, you should not...

• compare the unit price of similar items.

• read reviews from unbiased sources

• assume that buying the cheapest item is the smartest choice

• wait for sales to get the best price.

Which example shows an advantages of owning a car over leasing one?

• Smaller monthly payments and good warranty to cover repairs.

• Expiring warranty means that you will get to handle repair payments.

• No restrictions on the number of miles to drive and the ability to customize, or make changes to the

  car.

• You will drive a fairly new car for a limited period of time.

Why is figuring out the unit price of something useful when shopping?

• It helps you check to see if the price is correct.

• It helps you locate items in the store.

• It helps you determine the best deal.

• It determines if a coupon is still usable