College Personal Finance

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

A vehicle lease has several costs. Which of the following is the price of the vehicle?

Capitalized cost

A service contract

Covers the repair costs of a product.

Jennifer is thinking about leasing a sports car. She will make monthly payments based on a money factor and the price of the vehicle, which is called the

capitalized cost

The price of a leased vehicle is known as the

capitalized cost

Craig wants to get his old car repaired, but he doesn't want to spend much money. He probably will NOT want to go to the most expensive repair service, which is from a(n)

car dealer

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

A fixed operating cost for a vehicle is

depreciation

The largest fixed expense associated with a new automobile is

depreciation

Total vehicle cost equation

down payment+total monthly loan payment+opportunity cost of down payment-estimated value at end of ownership

Most products come with some guarantee of quality. Which of the following is usually in 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 conditioning

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

full warranty

Which of the following costs will increase directly with the number of miles driven?

gasoline

Frank bought some mini blinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have?

implied warranty

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

implied warranty

Heidi plans to purchase a pickup truck. The range available for negotiation is the difference between the sticker price and the

invoice price

While evaluating alternatives, comparison shopping will be beneficial for buying

items that can be researched easily with advertisements

Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the following warranties does she have?

limited warranty

Steve bought a laptop that was defective. This laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he have on his laptop?

limited warranty

Most customer complaints result from the all of the following except

long product lives

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

money factor

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

If you want to pay a set fee to receive unlimited or reduced-fee legal assistance, you should use (a)

prepaid legal services

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

private-label or store brands

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

residual value

Negotiation activities are part of the ____ phase of the research-based buying process.

selection and purchase

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

set price