Personal Finance Chapter 14
Vehicle Emissions Test
A _________ assures that a car meets minimum clean air standards
Identify your needs
First step in car-buying process
Engine Oil Transmission Oil Power Steering Oil Brake Oil Radiator Coolant
Fluids in car
False
Generally, vinyl upholstery is more durable than cloth
B
If the sticker price for a new car is $20,250 and the invoice price is $18,000, what would a fair price be for the car? A. $16,500 B. $19,000 C. $21,000 D. None of these
False
Special features can usually be added onto a car at a lesser cost by the car dealership than by a specialty shop
Change oil on regular basis Follow routine maintenance Keep car in garage Clean and wax Preserve Interior Repair Paint Chips Follow Wise Driving Habits
Steps to extend life on automobile
False
Vehicle Emission tests are required by all states
Oxidize
When car paint begins to ___________, it permanently loses its color and shine
A
Which of the following would not be covered by warranty? A. Tune-up B. Transmission C. Engine D. Drivetrain
Protection from theft and vandalism Protection from weather Easier to start car Battery lasts longer
Why to garage a car
Avoid hard acceleration and high speed driving Don't race a cold engine Keep coolants in car's radiator Shift deliberately when using a stick shift Don't shift into forward gear while coasting backwards
Wise Driving Habits
Lemon Laws
______________ protect consumers from the consequences of buying a defective car
Preapproval
_______________ is the process of getting a new- or used-car loan preaaranged through your bank or credit union
Consumer Reports/Car and Driver
Sources of information about cars
Buyers Guide
The Federal Trade Commission requires dealers to place a sticker, called the _____________, on all used cars they offer for sale
Sticker Price
The ___________ is the price shown on the tag in the car's window; it is the manufacturers suggested retail price
B
As a general rule, most experts advise having your oil changed every ___________ miles? A. 1,000-3,000 B. 3,000-5,000 C. 10,000 D. 25,000-30,000
True
Private sellers are not covered under the FTC Used Car Rule
Credit Unions, Car Dealers, Banks
3 Sources of loans for purchase of automobiles
Age Condition Features Mileage Model of Car
5 factors that cause a car to depreciate
Appreciation
Rare cars and very old vehicles in excellent condition may experience ____________, or an increase in value
Hybrid
A __________ is a type of vehicle that uses alternate energy sources
Car-Buying
A __________ service allows you to choose the vehicle features you want and have a professional car buyer handle the price negotiation for you
Car Title
A ___________ lists the legal owner and the registered owner of a vehicle
Polishing Compound
A ____________ can be used to smooth out car surface scatches, scuffs, and stains
Car Detail
A ____________ is a service provided by specialists who clean and polish the exterior, along with treating and cleaning the interior
Warranty
A ____________ is a written statement about a product or service's qualities or performance that the seller assures are true
Consignment Lot
A _____________ is a large parking lot where car owners can park and advertise their cars
Test Drive
A _____________ is a simple road test where you drive the car for several miles in typical traffic and road conditions
Compression
A ________________ test can tell you whether to expect serious engine trouble ahead
Vehicle Identification Number
A car's __________ is an alphanumeric number that identifies it
Gas and oil Depreciation Registration and title Maintenance and Repairs
Costs of Operating a car
B
If you are uncomfortable with price negotiations, you may want to? A. Buy a used car B. Hire a car-buying service C. Buy a new car D. Buy a car from a private seller
False
It is almost impossible to determine a fair price for a new car
False
It is important to get a credit preapproval after you have selected the car of your choice
True
Lemon laws generally require you to have good documentation of your car's problems
True
Most car dealerships offer financing options for car purchases
False
Preapproval adds to the total costs of buying a car
Seat covers Floor Mats Avoid eating food or drinking
Protect upholstery
Upholstery
The car's interior ____________. or seat-covering material must be maintained to preserve it
Depreciation
The decline in value of a vehicle due to normal wear and tear
True
The first step in buying a car is deciding what type of car you both need and want
B
The single greatest cost of owning a new car is? A. The car payment B. Depreciation C. Fuel D. Insurance
A
When is the best time to get credit preapproval for a car loan? A. Before visiting car dealers B. During price negotiations C. After determining which car you would like to purchase D. After the purchase
C
When your vehicle is new, you should? A. Drive at a constant speed rather than at varying speeds B. Shift gears rapidly to help break in your transmission C. Avoid long trips D. All of these
A
Which of the following is not a dealer add-on? A. Tune-up B. Protective wax or polish C. Rust proofing D. Window Tinting
D
Which of the following would not be considered as part of performing routine maintenance on a car? A. Rotating the tires B. Changing the oil C. Replacing the spark plugs D. Replacing the transmission
Dealer Add-Ons
______________ are high-priced, high profit dealer services that add little or no value to a car
