1. Comparison shopping for a new vehicle includes
A. deciding between needs and wants.
B. fitting the purchase into your budget.
C. determining the value of your trade-in.
D. obtaining a loan preapproval.
2. Same as cash offers often carry the risk that
A. you will lose a tax deduction for the interest owed.
B. you will be insolvent.
C. all prior interest will be owed if full payment is not made within the agreed time period.
D. your interest rate will be increased..
3. Of these four items, which is most aptly described as a need?
A. A condominium
B. A new house
C. Home ownership
D. Shelter
4. When negotiating to purchase a vehicle, besides the price, what other variables should be considered?
A. Trade-in value
B. All of these
C. Interest rate
D. Prices of options
5. Buying without fully considering priorities and alternatives is called
A. impulse buying.
B. planned buying.
C. money saving.
D. unplanned purchasing.
6. In addition to the price of the auto, ____ may be a price variable in an auto negotiation.
A. financing terms
B. service contract costs
C. all of these
D. trade-in value
7. Tom has a four-year closed-end lease on his Land Cruiser. His contract stipulates a $0.42 per mile excess mileage charge in excess of 48,000 miles. If he actually drove the vehicle 60,000 miles during the four years, he would be charged an extra ____.
A. $5,040
B. $5,670
C. $0
D. $2,016
8. A form of alternative dispute resolution that is legally binding at least one party is
A. mediation.
B. civil court.
C. arbitration.
D. small claims court.
9. A form of dispute resolution that is not legally binding on either party is
A. civil court.
B. mediation.
C. arbitration.
D. small claims court.
10. Service contracts are also called ____ warranties.
A. implied
B. full
C. extended
D. Limited