UNHS - Personal Finance - Self check 14

A certified used car is sold

• by a private owner.

• by a private seller.

• by a dealership.

• at an auction.

Depreciation is

• a decrease in value as a result of use and age.

• the amount of time a used car is under warranty.

• the amount of interest included in a finance charge.

• the amount of time it takes to repay a car loan.

The unique number assigned to a car is the

• warranty.

• vehicle identification number.

• inspection number.

• money factor.

Which law requires that a seller or manufacturer repair or replace a defective new vehicle or refund the

purchase price?

• Truth in Lending Act

• lemon law

• Magnusson-Moss Warranty Act

• the USA Patriot Act

In which stage of the decision-making process should you determine your price range?

• Evaluate the decision.

• Act on the decision.

• Define the decision to be made.

• Explore all alternatives.

In which stage of the decision-making process should you negotiate a price?

• Explore all alternatives.

• Make a choice.

• Act on the decision.

• Evaluate the decision.

In which stage of the decision-making process do you define what you want and need in a car?

• Define the decision to be made.

• Evaluate the decision.

• Make a choice.

• Act on the decision.

When you are negotiating the price of a car, you should

• offer the sticker price.

• offer less than the sticker price.

• offer more than the sticker price.

• let the seller make the first offer.

If a car if advertised as “AS-IS; NO WARRANTY,” it means

• the SELLER is responsible for all repairs.

• the car has undergone a complete inspection.

• the BUYER is responsible for all repairs.

• buyer and seller split the cost of repairs.

Which three factors will determine your payments if you finance a car?

• depreciation, capitalized cost, and capitalized cost reduction

• capitalized cost, mileage limit, and money factor

• depreciation, capitalized cost, and money factor

• amount borrowed, interest rate, and repayment period