HPF Ch 8 Review

Which of the following are things to look for when shopping for a new or used car?

• the mileage
• damage to the exeterior of the car
• the price of the car
• all of these

What is depreciation?

• Cars lose value once you drive them.
• Cars lose space once you drive them.
• Cars gain value once you drive them.
• Cars lose mileage once you drive them.

The loss of an asset's value over time is called

• depreciation
• equalization
• amoritization
• normalization

The cost of owning a car includes

• insurance
• repairs
• gas
• all of these

A manufacturer's warranty on a car covers

• specific repairs for as long as you own the car
• all the maintenance costs for a specific number of miles
• specific repairs for a specific amount of time or number of miles
• collision repairs but no other repairs

A trade-in allowance is

• not available if there is a rebate
• not available if the selling price is less than the sticker price
• added to the sale price
• a discount resulting from trading in one car for another

All of the following are reputable places where you can get a car loan except

• a bank
• a loan shark
• a credit union
• from your parents

The _______________ is the cash you give to the dealer to lower the principal amount of the car.

• warranty expense
• interest amount
• down payment
• trade-in

A long-term rental of a car that allows a specific period of time and mileage is called

• purchasing a car
• borrowing a car
• leasing a car
• none of the above

By law, drivers are ___________ to pay for the damages they cause with their automobiles.

• not responsible
• negligent
• liable
• none of these