cyaf222: ch. 8 quiz

A vehicle lease is essentially

a rental of a vehicle

A service contract offers free or low-cost repairs to the product

for a specified period of time

Buying without fully considering priorities and alternatives is called

impulse buying

most people should not make buying decisions for expensive purchases

inside a retail store or in a showroom

____ should be completed before interacting with sellers.

a. Distinguishing between needs and wants b. Preshopping research c. Fitting the budget

A dispute solution that is not legally binding on either party is

mediation

Comparison shopping for a new vehicle includes

obtaining a loan preapproval

Which of the following is not true regarding service contracts on new cars?

often there is a deductible that must be paid each year the contract is in force

The key to success in negotiating a car purchase is to obtain the ____ before discussing any other aspects of the deal.

price for the car

Preshopping research for new cars should focus on

prices, trad-in value, financing

The term used to describe righting a wrong is

redress

Which is not an additional charge when leasing an automobile?

residual value

When you have a consumer complaint, it is important to deal with ____ before moving to other channels.

the actual seller

When negotiating to purchase a vehicle, besides the price, what other variables should be considered?

trade-in value, prices of options, and interest rate

Owing more on a vehicle loan than the vehicle is actually worth is called being

upside down

____ tend to have the widest range of choices and quality for used cars.

used car dealerships

When the final balloon payment is due on a balloon auto loan, you can generally

a. pay the balloon payment and keep the car.b. return the car to the lender.c. sell the car and pay the balloon payment with the proceeds.

The product that is the best buy will be the one with the

acceptable quality at a fair price

Same as cash offers often carry the risk that

all prior interest will be owed if full payment is not made within the agreed time period

In ____ lease, you must pay any difference between the projected residual value of the vehicle and its actual market value at the end of the lease period.

an open-end

A dispute solution that is legally binding on at least one party is

arbitration

The ____ outlines the specific vehicle to be purchased and all charges for the purchase.

buyer's order

From simply a financial perspective the best way to buy vehicles is to buy

c. buy one or two year-old used cars and drive them for five or more years.

What should buyers do before making a major purchase decision?

comparison shop

What percentage of product rebates go unclaimed?

25 percent