Chapter 6 quiz

Which of the following is a disadvantage of a car lease? - A large down payment is required. - At the end of the lease, you have no ownership interest in the vehicle. - The capitalized cost is usually lower than the list price. - Monthly lease payments are usually lower than monthly financing payments. - You can usually obtain a more expensive vehicle than with an outright purchase.

- At the end of the lease, you have no ownership interest in the vehicle.

Which of the following is NOT a strategy for wise buying? - Buying winter clothes on sale in mid- or late winter - Using product comparison websites for comparing brands - Buying items on impulse - Carefully considering buying alternatives at various purchase locations - Using unit pricing to compare products

- Buying items on impulse

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. - Independent auto repair shop. - Mass merchandise retailer. - Service station. - Specialty shop.

- Car dealer.

When Jane researched the brands and prices of refrigerators, she was - Comparison shopping. - Compulsive shopping. - Impulse shopping. - Trade-off shopping. - Warranty shopping.

- Comparison shopping.

A service contract - Is better than an extended warranty. - Is an agreement to cover repair during the implied warranty period. - Is included automatically with the purchase of a vehicle. - Usually does not cover the engine cooling system. - Covers the repair costs of a product.

- Covers the repair costs of a product.

The appearance of a used car can be deceptive. When purchasing a used vehicle, it is a good idea to - Take out a loan for the entire cost. - Accept the dealer at his word about the condition of the vehicle. - Have a trained and trusted mechanic of your choice check out the vehicle. - All of these are correct. - None of these is correct.

- Have a trained and trusted mechanic of your choice check out the vehicle.

A variable operating cost for a vehicle is - Depreciation. - Insurance. - Interest on an auto loan. - License and registration. - Maintenance and repairs.

- Maintenance and repairs.

The amount printed on a label with the suggested retail price that is posted on a vehicle is called the - Invoice price. - Sticker price. - Set price. - Capitalized cost. - Residual value.

- Sticker price.

This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired. - Coupon - Open dating - Rebate - Unit pricing - Warranty

- Warranty

Information gathering is part of the ____ phase of the research-based buying process. - evaluating alternatives - post purchase activities - pre-shopping activities - selection and purchase - ordering activities

- pre-shopping activities