PHS Unit 5 Test

When purchasing a vehicle you should always test drive the vehicle?

• True

• False

Two common ways to save money are discount coupons and manufacturer's rebates?

• True

• False

Which type of contract should you get when leasing a vehicle?

• Closed end

• Open end

• Revolving

• Balloon

Answer explanation

An open end contract may surprise you at the end with a balloon payment (an extra large payment).

A mortgage payment is made up of PITI, what does PITI stand for?

• payment, interest, terms, insurance

• payment, interest, taxes, insurance

• principal, interest, taxes, insurance

• principal, interest, terms, insurance

Price is the most important criteria to consider when choosing between two similar products.

• True

• False

Answer explanation

As you learned from the PACED model, price is just one criteria to look at when making a purchase.

Leasing a vehicle is really only beneficial to those who drive less than __ miles and live close to the dealership.

• 5,000

• 10,000

• 15,000

• 20,000

The purpose of brand advertising is to make you remember a particular brand.

• True

• False

Answer explanation

That is one reason generic products are cheaper, they aren't paying high advertising fees.

The cheapest product is always the best one to buy?

• True

• False

Answer explanation

Price is just one criteria that you should look at when making a purchase.

Which of the following are advantages to buying a new car?

check all that apply

• warranty

• get what you want

• No initial depreciation

• reliability

When buying a car, you should negotiate in three parts. Which answer is in the correct order to negotiate in?

• financing

  vehicle price

  warranty package

• vehicle price

  trade-in price

  financing

• trade-in price

  vehicle price

  financing

• List price minus the sales price plus financing deals