Econ Chapter 6

in ___ a third party tries to settle a difference or grievance and the process is legally binding

arbitration

these are sources of car loans

consumer finance companies, credit unions, car manufacturers, and banks

the condition of ____ equity can result with automobile financing when a long payment period is chose where the value of the car is less than the loan amount

upside-down (negative) equity

what are the variable costs of leasing a car?

money factor (interest paid on the capitalized cost), the capitalized cost, the monthly payments/number of months, and the residual value (projected value at the end of the lease)

these factors influence price of a car:

number of miles, features/options, demand for model, and condition

most consumer complaints are resolved where?

original location

you can put a smaller upfront payment (ex security deposit) when you __ a car

lease

___ states a defective product can be fixed or replaced during a reasonable amount of time

full warranty

a ___ states that a defective product can be fixed or returned during a reasonable amoount of time

full warranty

what are the main variables of a car warranty?

time, mileage, and parts they cover

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

sticker, invoice

who can be offered special new car rebates?

students, teachers, credit union members, and real estate agents

these are variable costs of cars

repairs oil, gas, parking/tolls,

these two factors influence driving costs

size of car and how miles you drive

well maintained and certain high quality vehicles like BMW depreciate a ___ rates

slower

you can sue for 1,500-3,000 without an attorney, but need witnesses in ___

small claims court

a __ warranty of merchantability covers the product's intended use or other basic functions

implied

a used car dealer must display what sticker telling whether the car comes with a warranty

buyer's guide

a ___ warranty is in writing created by the seller and has two forms: full and limited

express

which automobile costs are fixed (remain the same for at least a period of time)?

registration fees, interest on car loans, insurance and depreciation

an agreement between a business and a consumer to cover repair costs in return for a fee

extended warranty or service contract

an agreement between business and a consumer to cover repair costs of a product

extended warranty/ service contract

what personal factors affect your buying decisions?

gender, age, and occupation

the loss of a vehicle's value due to time and use and the largest fixed cost of a new car

depreciation

you shouldn't talk about borrowing plans until the price is set because you should separate ___ from the negotiations over price of car

how you will pay

two important sources of used car prices are:

kelley's blue book and edmund's used car prices

a network of community-supported law offices that provide legal assistance to people who cannot afford their own attory is called:

legal aid society

in ___ a third party tries to settle a grievance, and the process is non-binding

mediation

what is an example of a limited warranty?

parts will be replaced during the warranty period, but you have to pay for labor

it is important to have all necessary information about the product and buying situation when using ___ to determine purchase price of cars or real estate

price negotiation