Econ Chapter 6
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
what are the main variables of a car warranty?
time, mileage, and parts they cover
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
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 loss of a vehicle's value due to time and use and the largest fixed cost of a new car
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
___ 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 personal factors affect your buying decisions?
gender, age, and occupation
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
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
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
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
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