Car Ownership

What should you consider before buying a car?

• The total cost of ownership

• Only the car’s color

• Only the car’s speed

• Only the car’s brand

What does routine car service typically include?

• Washes, repairs, and gas

• Buying a new car

• Changing car color

• Upgrading car stereo

What does the term "capitalized cost" refer to in leasing?

• The monthly payment

• The price that will be financed through the lease

• The interest rate

• The insurance cost

What is the typical sequence of payments when entering a car lease?

• Final payment, then down payment

• Down payment, then monthly payments

• Monthly payments, then down payment

• Insurance payment, then cap cost reduction

What does the term "invoice price" NOT refer to?

• The price the customer pays at the dealership

• The price the manufacturer charges the dealer

• A key negotiation point

• A price that can sometimes be negotiated below

Why might dealerships be more willing to negotiate at the end of the year?

• To make room for new models

• Because cars are more expensive

• Because demand is higher

• Because they have fewer cars

What is the relationship between the manufacturer and the dealer in terms of car pricing?

• The manufacturer charges the dealer the invoice price

• The dealer charges the manufacturer the invoice price

• The customer charges the dealer the invoice price

• The government sets the invoice price

What is the invoice price NOT used for?

• Determining the car's color

• Negotiating the car's price

• Understanding dealer profit

• Knowing the manufacturer's charge to the dealer

What is the benefit to the dealership of selling cars below invoice price at year-end?

• Making room for new models

• Increasing the car's value

• Avoiding taxes

• Reducing employee workload

Who suggests the MSRP for a vehicle?

• The manufacturer

• The dealer

• The customer

• The government