Ch.6

All of the following are variable operating costs for a vehicle

- Maintenance and repairs - Tires - Parking - Gasoline and oil

While evaluating alternatives, all of the following are appropriate questions you could ask before making a major purchase

-Is it possible to delay the purchase or do without the item? - Should I pay for the item with cash or buy it on credit? -How do the price, quality, and service compare at different stores? - Which brands should I consider?

Mike bought a new car. His new car warranty probably included

-Possibility to transfer the warranty to other owners of the car (additional charges may apply) -corrosion warranty -coverage of basic parts against defects -powertrain coverage

A no-haggling dealer presents the price of a new car to bee accepted or rejected as stated and is called a ____ dealer

set price

If you have a problem whose remedy will be between $1,500 and $3,000, the appropriate toll to use would be a

small claims court

The amount printed on a label with the suggested retail price that is posted on a vehicle is called the

sticker price

All of the following are variable operating costs for a vehicle except

Deprectiation

Most products come with some guarantee of quality. This type of warranty covers the product's intended use of other basic understandinfs that are not in writing

Implied warranty

The dealer's cost is also known as the

Invoice price

Most products come with guarantee of quality. This type of warranty covers only certain aspects of the products, such as parts

Limited warranty

The appearance of a used car can be deceptive. When purchasing a used vehicle, it is a good idea to

Have a trained and trusted mechanic of your choice check out the vehicle

While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of

Impulse shopping

Which of the following is the lemon law?

It applies to vehicles that have been services four times to correct the same problem in the first 12,000 miles.

All of the following are fixed operating costs for a vehicle except

Maintenance and repairs

A process used to settle grievances in a nonbinding process is called a

Mediation

A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost?

Money factor

Which of the following is an advantage of a car lease?

Monthly lease payments are usually lower than monthly financing payments

The lowest payment does not necessarily mean the best credit plan. If your car loan is a long period of time, you may end up owing more than the car is worth, which is called

Negative equity

This shopping label is used primarily on perishable products to help the consumer judge freshness or shelf life

Open dating

These products are sold by one chain of stores and are low-cost alternatives to famous-name products

Private-label or store brands

George has never bought a new car before. Which of the following techniques should he use to get the best deal?

Research the dealer cost and begin negotiations from that point

Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by

The county health department

Steven needs to write a will. His best resource is an

attorney

The price of a leased vehicle is known as the

capitalized cost

When Jane researched the brands and prices of refrigerators, she was

comparison shopping

This type of promotion immediately reduces the amount a family spends on groceries each week

coupons

Most products come with guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a resonable amount of time

full warranty

Adolph has a low income and needs legal assistance. He should make use of (a)

legal aid society

A variable operating cost for a vehicle is

maintenance and repairs

These products are highly advertised and available at many stores

national brands

A vehicle lease has several costs. Which of the following is the amount paid monthly and the number of payments?

payment schedule

A partial refund of the price of a product is called a

rebate

The expected value of a vehicle at the end of a lease is called the

residual value

This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired

warranty

What is the unit price of a 32 ounce box of brown sugar that costs $3.20

$0.10 per ounce

Using the following information, What is the cost to lease a car? -Security deposit $300 - Monthly lease payment $300/month for a 5 year lease - Opportunity Cost of security deposit 300 x loan period (in years) x 2% interest - End-of-lease charges 500

$18,530 Total cost of lease = + Total monthly lease payment + Opportunity cost of security deposit + end-of-lease charges = ($300 x 5 years x 12 months) +($300 x 5 years x 2%) + ($500) = $18,530

Which of the following is a disadvantage of a car lease?

At the end of the lease, you have no ownership interest in the vehicle

Use the following information, what is the cost to buy a car? -Down payment $ 3, 000 - Monthly loan payment $350 per month for six- year loan -Opportunity cost of down payment $3,000 x loan period (in years) x 2% interest - Estimated value of vehicle at end of ownership period $4,000

$24,560 Total vehicle cost = Down payment + Total monthly loan payment + Opportunity cost of down payment - Estimated value at end of ownership= ($3,000) + ($350 x 12 months x 6 years) + ($3,000 x 6 years x 2%) - ($4,000) = $3,000 + $25,200 + $360 - $4,000 = $24,560

All of the following are fixed operating cost for a vehicle

- Depreciation - License and registration - Insurance - Interest on an auto loan

Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem?

Class action lawsuit

Most products come with some guarantee of quality. Which of the following is usually written form, created by the seller or manufacturer, and has two forms?

Express warranty

Mike bought a new car. His new car warranty probably included all of the following except

Extended coverage for air conditoning