week eight Learn

The range of negotiation is determined with a new car by knowing the _____ price and the _____ cost.

-list -invoice

Which of the following are examples of groups of people that might qualify for a class-action suit?

-people injured by a defective product -customers overcharged for a service -auto owners charged for unneeded replacement parts for their vehicles

Which items below affect the cost of an automobile lease?

-residual value—the projected value at the end of the lease -money factor—the interest rate paid on the capitalized cost -capitalized cost -the monthly payments and the number of months

The typical _____-related fraud works by soliciting charitable donations for phony efforts.

disaster

Dealing with the person who has the _____ to give you a lower price is a vital factor of negotiations.

ability

One of the factors that influences the price of buying a used car is capitalized cost.

False

True or false: The monthly payment is the best indicator of the true cost of a car loan.

False

One of the best sources of information about the product you are considering buying is:

independent testing organizations.

True or false: The drawbacks of leasing an automobile include no ownership interest in the vehicle and costs for extra mileage, for certain repairs, and for turning the car in early.

true

True or false: Two important sources of used car prices are Edmund's Used Car Prices and the Kelley Blue Book.

true

True or false: When attempting to trade in a current car for a new car, it is best not to mention a trade-in vehicle until the cost of the new car has been settled.

true

The APR is the best indicator of the true ____ of credit

cost

Product label on appliances includes information on operating _____, to assist you in selecting the most energy-efficient models.

costs

Well-maintained and certain high-quality vehicles ____ at slower rates

depreciate

The loss of a vehicle's value due to time and use and the largest fixed cost of a new car is called ______.

depreciation

True or false: A lease trap will usually not happen if you ignore the total cost of the lease agreement and focus only on the monthly payment.

false

True or false: At the end of a car lease, if the market value of the car is less than the residual value, you may be able to sell the car for a profit.

false

Depreciation is the largest Blank______ cost of a new vehicle.

fixed

When asked how much you can afford each month for a car, be sure to ask:

how many months.

A possible advantage of ____ an automobile is the smaller upfront cash outlay.

leasing

The information on the label of some food products includes ______ dating that helps the consumer determine freshness. This is a one-word answer.

open

The ______ law protects car owners after four attempts to get the same problem corrected or when the vehicle is out of service for more than 30 days within ____ months of purchase or within the first 12,000 miles.

-lemon -12

An express warranty is usually in writing, is created by the _____ or manufacturer, and has two forms: _____ warranty and limited warranty.

-seller -full

In which step of the wise online buying activities would the consumer compare brands and features?

Conduct online research.

A full warranty states that a defective product can be fixed or _____ during a reasonable amount of time.

replaced

Which of the following is not a drawback of leasing an automobile?

small cash outflow

Lifestyle, interests, hobbies, and peer group are all _____factors that affect your buying decisions.

social

You are considering a car with no down payment and monthly payments of $550 for 48 months and an estimated value at the end of the loan term of $8,000. A comparable model can be leased for $550 a month for 36 months with end-of-lease costs of $1,800. Which arrangement should you choose?

the loan and purchase because its cost is lower

You are considering a car with no down payment and monthly payments of $350 for 48 months and an estimated value at the end of the loan term of $4,000. A comparable model can be leased for $325 a month for 36 months with end-of-lease costs of $1,400. Which arrangement should you choose?

the loan and purchase because its cost is lower.

A variety of scams surface after Blank______ and Blank______.

tragedies; natural disasters

Lowballing and highballing sales techniques should be avoided when purchasing a vehicle.

true

Monthly car lease payments are often less than monthly car financing payments.

true

The unit price of chocolates in a box is found by dividing the price of the box of chocolates by the number of chocolates in the box. Assume all the chocolates have the same price per unit.

true

Products such as real estate or automobiles may be purchased using _____ negotiation.

price

One strategy that will help you avoid deceptive business practices is to always do business with reputable companies that have a track ____ of satisfying customers.

record

Which of the following automobile driving costs are categorized as variable operating costs?

Repairs Gas Oil Parking costs and tolls

Which of the following is not true concerning small claims court?

You can generally sue for as much as $100,000 in small claims court.

In ______, a third party tries to settle a grievance and the process is binding.

arbitration

Most consumer complaints are resolved:

at the original location.

In a(n) ______ -action suit, all affected parties are notified as to whether or not they want to participate or file an individual lawsuit.

class

Even if you win in small claims court, you will still need to:

collect the funds.

The common sources of information regarding products during the preshopping phase include personal _______ , media, and independent testing agencies such as Consumer Reports.

contacts

In a(n) ____ process, a third party tries to settle a grievance, but the process is nonbinding.

mediation

When you need repairs not covered by warranty, you should investigate, evaluate, and Blank______ a variety of servicing options.

negotiate

The difference between the sticker price and the dealer's cost is usually the range available for Blank______.

negotiation

When contracting to have repairs made to a car, it is wise to follow a process similar to when making the original purchase. Such a process of investigation, evaluation, and ______ can help minimize the ownership costs of a car. (Enter only one word per blank.)

negotiation

Which of the following items are timing strategies for purchases that could save you money?

-Buying winter clothes in late winter -Buying holiday decorations in late December and early January -Buying summer clothes in late summer

Which of the following are questions you should ask yourself when you are considering a major purchase?

-How should I pay for it? -Can I delay the purchase? -Which brands should I consider?

Which of the following automobile driving costs are categorized as fixed ownership costs?

-Insurance -Registration fees -Depreciation -Interest on car loans

Which of the following are given in the textbook as good sources for fair pricing on used cars?

-Kelley Blue Book -Edmund's Used Car Prices

The factors that influence the price of a used car include Blank______.

-condition -demand for the model -features and options -number of miles

Place the steps for wise online buying in the proper order.

-conduct -compare -make -plan

If a 10 pound bag of dog food sells for $6.99, what is the per unit cost of the dog food?

about $0.70 cents per pound

Most consumer complaints are resolved at the original _____ location

sales

If the dealer is not willing to pay enough for your used car as a trade-in, you should:

sell the old car to an outside party.

A limited warranty covers only certain aspects of the product and requires the buyer to pay part of the costs for:

shipping or repairs.

Lemon laws protect car owners after four attempts to get the same problem corrected or when the vehicle is out of service for more than _____ days within 12 months of purchase or the first 12,000 miles.

30

Which of the following are sources of automobile loans?

-credit unions -consumer finance companies -banks

Which of the following are personal factors that could affect your daily buying habits?

-education -gender -occupation -age

When selecting a lawyer, the questions to ask focus on the lawyer's _____ with similar cases, how charges will be set, and when ____ is due

-experience -payment

When selecting a lawyer, questions about legal costs should focus on the way charges will be calculated, such as _____ fee, _____ rate, or contingency basis.

-flat -hourly

A strategy that will help you avoid deceptive business practices is to recall the old adage: "Be cautious about offerings that seem too ______ to be ______." - because they often are

-good -true

-Ski jacket -Swimsuit -Baby strollers

-late winter -late summer -late spring

Banks, credit ___ , and consumer finance companies are all businesses that are sources of car loans.

unions

A car with a total purchase price of $12,000 is available, while a comparable model can be leased for $350 a month for 36 months with end-of-lease costs of $800. Which arrangement should you choose?

the outright purchase because its cost is lower

True or false: A lease trap can happen when you negotiate the monthly payment on a lease and ignore the capitalized cost of the vehicle.

true

True or false: A person could choose not to participate in a class-action suit and instead file an individual lawsuit.

true

True or false: Other than price, the product attributes to be considered when evaluating brand alternatives are performance, design, and warranty.

true

True or false: Well-maintained and certain high-quality vehicles depreciate at slower rates than vehicles not receiving the same level of care or not consisting of the same high quality.

true