Chapter 6

Invoice Price

A dealer's cost to purchase a car is also known as the ________

Impulse buying

Buyer's remorse is often the result of _______.

Pre-Approval Letter

If you are borrowing money to buy a car, you should bring this document to the negotiation to use as a tool

"I need transportation"

It's important to recognize this primary purpose when purchasing a car.

Roll-over

New car dealerships will be happy to _________ your negative equity (upside down-ness) in order to see you a new car, even though it's not in your best interest.

Pay off in shorter periods of time

One way to reduce the total interest owed on a car loan.

Buy Used Vehicles

People often do this to avoid having to pay the high depreciation costs of new vehicles

Sticker Price

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

20%

The average amount a new car depreciates in the first year.

Leasing

This option to "rent" a car is often allows individuals to have smaller payment and a nicer car, but usually results in more fees and expense in the long term

Down Payment

To avoid being upside down on your car, you should always save up for one of these.

High-balling

When dealers quote customers a high price for a trade in vehicle and make up the difference by charging more for the new vehicle

Low-balling

When dealers quote customers a low price for a vehicle and then increase the price with add-ons

Depreciation

__________________ is a fixed operating cost of owning a vehicle. It is the reduction in the vehicle's value over time.