Money Matters Chapter 13 Review
The FTC Used-Car Rule requires which of the following to be displayed on the Buyer's Guide sticker?
A description of warranty coverage or lack of it.
An endorsement by the ______ is an indicator of reliable servicing.
American Automobile Association (AAA)
The ______ contains a list of residual values of leased cars.
Automotive Lease Guide
Why should trade-in prices and vehicle prices be negotiated separately?
Consumers often get a better deal that way.
Which of the following is true regarding vehicle options?
Different makes and models come with different sets of standard options.
Requires dealers to fully disclose to buyers what is and is not covered under a used vehicle's warranty.
FTC Used-Car Rule
For new cars, the sticker price is the ______, which is recommended by the manufacturer.
MSRP
Provides protections for purchasers of any product that costs over $25 and has a manufacturer's warranty.
Magnuson-Moss Warranty Act
Which of the following is true regarding the automobile marketplace?
The automobile marketplace offers many different ways for consumers to shop.
Which of the following is true regarding lemon laws?
The problem must be well-documented, as well as the attempts to fix it.
When purchasing a used car, it is a good investment to purchase a(n) ______.
VIN history report
Dealership that sells both new and used vehicles that are inspected, serviced, and warranted.
auto superstore
Price or value of a vehicle on which a lease is based.
capitalized cost
Price of a vehicle for lease including a cash down payment, trade-in allowance, rebate, or other buying incentive.
capitalized cost reduction
Which of the following costs is unique to leasing a car?
capitalized cost reduction
Written promise to the customer that should something break, malfunction, or otherwise go wrong with a vehicle within a stated period of time, the manufacturer will make necessary repairs at no cost.
car warranty
Previously owned vehicle that has received a thorough mechanical and appearance inspection along with necessary repairs and replacements.
certified used car
Decrease in the value of property as a result of use and age.
depreciation
Which of the following is an expense that is not actually paid, but can represent a sizeable amount of money?
depreciation
The ______ is the length of the lease, which is usually 24, 36, or 48 months.
lease term
Requires a seller or manufacturer of a defective vehicle either to replace or repair it or refund the buyer's money.
lemon law
Your car will have fewer breakdowns and repairs, better fuel economy, and greater trade-in value by keeping up with regular ______.
maintenance
Term of a lease, usually 12,000 or 15,000 annually.
mileage limitation
Interest that is paid on a leased vehicle.
money factor
Feature available for a particular car.
option
The FTC Used-Car Rule does NOT apply to ______?
private sellers
Worth of a car at the end of the lease.
residual value
Price displayed on a vehicle as its selling price.
sticker price
Assigned by the automobile industry; used to identify an individual automobile.
vehicle identification number (VIN)
