Personal Finance: Unit 3 Chapter 14

Over the past five years, De'Asia has put the following miles on her car:Year 1: 10,000 milesYear 2: 12,500 milesYear 3: 8,000 milesYear 4: 14,000 milesYear 5: 13,500 milesOver this period, what is the average number of miles De'Asia drives her car annually?

11,600

Monthly car payments should be no more than _____ percent of the money you have left after paying all of your other expenses.

20

Suppose you offer a car dealership $22,000 for a new vehicle. The salesperson says that she will sell you the vehicle for 3 percent more than your offer. If you agree, what are you going to pay for the vehicle?

22,660

A fair price for a new car is likely to be about _____ percent above the _____ price.

3 to 6; invoice

Typically, you should expect to change the oil in your vehicle every three months or every _____ miles, whichever comes first.

3,000 to 5,000

All of the following websites allow you to search for specific models of new and used cars available in your area except

Consumer Reports

____ are high-priced, high-profit dealer services such as checking the air in the tires that add little or no value to your vehicle.

Dealer add-ons

A decline in the value of a vehicle due to normal wear and tear is called __.

Depreciation

A used vehicle inspection typically costs about $500.

False

All used car buyers are protected by the FTC's Used Car Rule.

False

Assigned risk pools are state-run programs that offer very low insurance rates to people who have excellent driving records.

False

Kelley Blue Book publishes a popular vehicle pricing guide for new cars.

False

Most car buyers pay cash for their cars to avoid interest charges.

False

Most people spend more of their income on transportation than on any other item.

False

Pre-approval combines the financing of your car with the process of negotiating the car's price.

False

Typically, you can expect your vehicle to require a major engine tune-up every 3,000 miles or so.

False

A(n) ____ is a type of vehicle that uses alternate energy sources, such as natural gas or battery power, in addition to gasoline.

Hybrid

The price a dealer pays for a new vehicle is called the ____ price.

Invoice

_______ is the process of getting a new- or used-car loan prearranged through your bank or credit union.

Preapproval

A car ____ is a legal document that establishes ownership of the vehicle.

Title

All states charge fees for title and registration.

True

Before you start shopping for a car, determine how much you can afford to spend.

True

Which of the following can tell you if the head gasket on your vehicle's engine needs to be replaced?

a compression test

With a vehicle's VIN, you can determine all of the following except

how quickly the vehicle can go from 0 to 60 MPH

A used car

is likely to need more repairs than a new car

A(n)---- is a substance that can smooth out surface scratches, scuffs, and stains from your car's paint.

polishing compound

Each of the following is a good driving habit except

race your engine as soon as you start the car, to warm it up more quickly

In most cases, the most important factor in determining a car's resale or trade-in value is

the vehicles age

Last year, Caleb performed the following maintenance to his car: Four lube, oil, and filter jobs at $20/each Two new tires at $150/each Radiator flush and new hoses and belts at $250 How much did Caleb spend on maintaining his car last year?

$630

A vehicle with substantial defects that the manufacturer has been unable to fix after repeated attempts is called a(n) ______.

Lemon

Which of the following vehicles would most likely have the highest insurance rate?

New sports Car

For a new car, the manufacturer's suggested retail price, or __ price, is the price shown on the tag in the car's window.

Sticker

Experts recommend never buying a vehicle on your first visit to the dealership.

True

Generally, cloth vehicle upholstery is more durable than vinyl. T or F

True

When you compare the prices of different vehicles, be sure to compare models that have the same options.

True

You should negotiate the price for a new car separately from the price of your trade-in.

True

You will probably get more money for your used car if you sell it yourself rather than trading it in at a dealership.

True

Many states require vehicles to pass a(n) ____ test, which verifies that a vehicle meets minimum clean-air standards

vehicle emission