Chapter 14 Personal Finance Review
_______ is the process of getting a new or used car loan prearranged through your bank or credit union
preapproval
Lemon laws generally require you to have good documentation of your car's problems
true
Most car dealerships offer financing options for car purchases
true
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
$19,000
As a general rule, most experts advise having your oil changed every ____ miles
3,000 to 5,000
Rare cars and very old vehicles in excellent condition may experience ________, or an increase in value
appreciation
When your vehicle is new you should
avoid long trips
When is the best time to get credit preapproval for a car loan
before visiting car dealer
The Federal Trade Commission requires dealers to place a sticker, called the _______, on all used cars they offer for sale
buyer's guide
A ________ service allows you to choose the vehicle features you want and have a professional car buyer handle the price negotiation for you
car buying
A _____ is a service provided by specialists who clean and polish the exterior, along with treating and cleaning the interior
car detail
A _____ lists the legal owner and the registered owner of a vehicle
car title
A ______ test can tell you whether to expect serious engine trouble ahead
compression
A _____ is a large parking lot where car owners can park and advertise their cars
consignment lot
_______ are high priced, high profit dealer services that add little or no value to a car
dealer add ons
The decline in value of a vehicle due to normal wear and tear is called
depreciation
The single greatest cost of owning a new car is
depreciation
Generally, vinyl upholstery is more durable than cloth
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
false
Preapproval adds to the total costs of buying a car
false
Special features can usually be added on to a car at a lesser cost by the car dealership than by a speciality shop
false
Vehicle emission tests are required by all states
false
If you are uncomfortable with price negotiations you may want to
hire a car buying service
A _____ is a type of vehicle that uses alternate energy sources
hybrid
_____ protect consumers from the consequences of buying a defective car
lemon laws
When car paint begins to _____, it permanently loses its color and shine
oxidize
A _____ can be used to smooth out car surface scratches, scuffs, and stains
polishing compound
What would not be considered as part of performing routine maintenance on a car
replacing the transmission
The _____ is the price shown on the tag in the car's window; it is the manufacturer's suggested retail price
sticker price
A ______ is a simple road test where you drive the car for several miles in typical traffic and road conditions
test drive
Private sellers are not covered under the FTC Used Car Rule
true
The first step in buying a car is deciding what type of car you both need and want
true
What is not a dealer add on
tune up
What would not be covered by warranty
tune up
The car's interior _____, or seat covering material, must be maintained to preserve it
upholstery
A _______ assures that a car meets minimum clean air standards
vehicle emission test
A car's _____ is an alphanumeric number that identifies it
vehicle identification number (VIN)
A _____ is a written statement about a product or service's qualities or performance that the seller assures are true
warranty
