Buying and Owning a Vehicle
Sarah paid $17,400 for a new car last week. This price was 3% above the vehicle's invoice price. What was the dollar amount of the invoice price
$16,878
suppose you offer a car dealership $22,000 for a new vehicle. The salesperson says that she will sell you the vehicle for 4% more than your offer. If you agree, what are you going to pay for the vehicle?
$22,880
last year, Caleb performed the following maintenance to his car: 4 lube, oil, and filter jobs at 30$ each two new tires at $125 each radiator flush and new hoses and belts at $275 how much did Caleb spend on maintaining his car last year?
$645
over the past 5 years, Brian has put the following miles on his car: Year 1 - 12,000 miles Year 2 - 11,500 miles Year 3 - 7,000 miles Year 4 - 15,000 miles Year 5 - 12,500 miles over this period, what is the average number of miles Brian drives his car annually?
11,600 miles
vehicle emission tests are often required every __ years once the car is __ or more years old
2, 4
how much do they spend on transportation?
20%
monthly car payments should be no more than _____ percent of the money you have left after paying all of your other expenses.
20%
what are examples of accessories?
GPS systems, DVD players, snow tires, satellite radio, remote start systems, alarm systems, window tinting, sound systems
what is a lemon?
a car with substantial defects and does not work after *multiple* times and cannot be fixed
What is oxidation?
a chemical reaction with the air that causes paint to lose its color and shine
what is the Used Car Rule?
a federal law that requires dealers to fully disclose to buyers what is and is not covered under warranty for the used vehicle
consignment lot
a large parking lot where car owners can park and advertise their cars
car title
a legal document that establishes ownership to the vehicle
what is a car title?
a legal document that establishes your ownership of the car
what is a car registration?
a license tag fee that must be renewed annually
what are the differences between buying a used car and buying a new car
a new car is much more expensive and loses much of its market value as soon as you drive it off the lot a used car is likely to need more repairs
what is a car-buying service?
a professional negotiating service that helps consumers buy cars
what is extended warranty?
a service plan; you pay upfront for later repairs
what is a car detail?
a service provided by specialists who clean and polish the exterior as well as clean and treat the interior of a car
what is a polishing compound?
a substance that can smooth out surface scratches, scuffs, and stains
what is a compression test?
a test that detects engine trouble in a car
what is the vehicle emission test?
a test to verify that a vehicle meets the minimum clean-air standards
what is a hybrid car?
a type of vehicle that uses alternate energy sources in addition to gasoline
what is the Vehicle Identification Number?
an alphanumeric number that identifies each vehicle manufactured sold in the United States
who can purchase an extended warranty?
car buyers
fuel
cost of gasoline depends on world supplies of crude oil, political conditions, and world energy markets
what is the car buying process?
decide what you can afford identify and research your choices decided whether to buy new or used decide how you will pay for it check insurance rates search for available vehicles test drive each vehicle check the history of a used vehicle get the vehicle checked mechanically determine a fair price negotiate avoid dealer add-ons
depreciation
decrease in cost of value
lemon laws
exists in many states and protects consumers from the consequences of buying a defective car
what is an example of an add-on?
extended warranties
true or false: most people spend more of their income on transportation than any other item
false
what are the costs of owning a car?
fuel depreciation registration and title fees vehicle emission fee maintenance and repairs accessories
what are dealer add-ons?
high-priced, high-profit dealer services that add little or no value
what are classic cars?
older vehicles in excellent condition that appreciate if valued as collector's items
how do you extend the life of your car?
perform routine maintenance keep your car in a garage preserve the interior preserve the exterior follow wise driving habits
when you are researching your choices, what are some things to look for?
performance repair records safety records fuel economy
who does not have to display the Buyer's Guide sticker?
private sellers
what is the sticker price?
the manufacturer's suggested retail price (MSRP) shown on the tag in the car's window
what is the invoice?
the price the dealer pays for the car
preapproval
the process of getting a new or used-car loan prearranged through your bank or credit union
what do lemon laws do?
they allow you to get a new car or get your money back
true or false: a fair price for a new car usually lies somewhere between the sticker price and invoice price
true
true or false: all states charge fees for title and registrations
true
true or false: you must pay title fees and sales taxes at the time you buy the car
true
true or false: you should negotiate the price of your car separately from the price of your trade in
true
how many times should you wax the paint?
twice a year
hybrid
type of vehicle that uses alternate energy source such as natural gas or battery
what is the break in period for a car?
when you first get it and you drive differently
