Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Which
of the following statements about financing a car is true? a. | The longer the
term of the loan, the smaller the amount of the monthly payment. | b. | The longer the
term of the loan, the smaller the total amount to be paid. | c. | The greater the
down payment, the larger the monthly payments. | d. | The shorter the
term of the loan, the smaller the monthly payments. | | |
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2.
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Federal law requires cars dealers to a. | provide a
pamphlet to consumers on safety aspects of all new cars. | b. | place a large
sticker—a Buyer’s Guide—on every used car for sale. | c. | provide
consumers with the costs and terms of a vehicle lease. | d. | all of the
above | | |
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3.
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The
price of a new vehicle a. | is fixed at the sticker price. | b. | is discounted on
the basis of time of year, negotiating ability of the buyer, and other
factors. | c. | remains constant throughout the year. | d. | none of the
above | | |
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4.
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The
Buyer’s Guide sticker that is required on the window of every used vehicle sold by a dealer must
include which of the following? a. | disclosure of the lowest price that has been paid by a buyer in
that state | b. | the name of the mechanic who inspected the
vehicle | c. | advice that the buyer should get all promises in
writing | d. | the name and contact information of the prior
owner | | |
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5.
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The
Kelly Blue Book and Web site provide a. | prices for used and new cars,quality reviews, and information
on available financing. | b. | safety information on new and used
cars. | c. | crash and rollover test comparisons of various cars, light
trucks, vans, and SUVs. | d. | safety and reliability test results of various
tires. | | |
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Completion
Complete each sentence or
statement.
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Complete each of the following statements with the appropriate choice below.
Some choices are not used.
“as
is” | leasing | discount | maintenance | Federal Trade Commission | misuse | Kelly Blue
Book | interest rates | | |
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6.
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____________________ for car loans vary depending on whether the car is new or
used.
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7.
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The
size of a ____________________ depends on the time of year, the buyer’s negotiating ability,
special sales, manufacturer’s bonuses, and rebates.
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8.
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If a
sticker on a used car says that it is being sold ____________________, this means that there is no
warranty.
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9.
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The
____________________ now requires used car dealers to place a large sticker—a Buyer’s
Guide—in the window of every vehicle offered for sale.
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10.
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A
warranty may become ineffective if you fail to perform proper ____________________ or you
____________________ the car.
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Matching
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Match each item with the correct statement below. Some items will not be
used. a. | insurance
| e. | safety | b. | fuel economy | f. | quality | c. | leasing | g. | repossession | d. | price | h. | warranty | | | | |
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11.
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the
payment of a monthly fee to drive a car for a certain time period, without owning the
car
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12.
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car
financing company takes ownership of the car away from the buyer who has failed to make timely
payments
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13.
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one
of the major financial costs of having a car
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14.
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bumper-to-bumper type cover most auto repairs for 36,000 miles or 36 months, whichever
comes first
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15.
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best
guide for this is the Kelly Blue Book
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Short Answer
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16.
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Identify at least one advantage and one disadvantage of leasing a car.
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Vehicles Buyers Order
Purchaser: Leo Angel
Address: 555
Main St., Your Town, Your State Your Zip
Phone:
800-205-3353
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17.
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What
type of car is Leo Angel buying?
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18.
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What
is the base price of the car that Leo Angel is buying? How much is the total cost of the
car?
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19.
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What
is Leo paying for over and above the purchase price of the car?
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20.
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How
is Leo paying for the car?
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