Question 1

Comparison shopping for a new vehicle includes

Accepted Answer

The answer of Comparison shopping for a new vehicle includes
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Question 2

The process of comparing products or services to find what you think is the best buy is called

Accepted Answer

Comparison shopping involves evaluating different products or services based on their features, quality, price, and other factors in order to determine the best option to purchase. The other options (negotiating, preshopping research, and decision making) may be steps involved in the comparison shopping process, but they do not encompass the entire process.

Question 3

What percentage of product rebates go unclaimed?

Accepted Answer

25 percent of product rebates go unclaimed because many consumers do not know about them or do not take the time to redeem them.

Question 4

Which of the following will not help you become a better on-line shopper?

Accepted Answer

Using a debit card for online purchasing is not recommended as it is directly linked to your bank account and in case of any fraud, hackers may have direct access to your bank account. It is better to use a credit card as it offers protection against fraudulent charges and allows you to dispute charges if necessary. Additionally, using only one particular credit card for online purchases can also help you keep track of your spending and monitor your account for unauthorized transactions. Only doing business with sellers for which you have complete contact information and not using your regular email address can also help protect your personal information and avoid scams.

Question 5

A(n) ____ is a refund of part of the purchase price.

Accepted Answer

A rebate is a partial refund of the purchase price of a product or service, often offered to incentivize a purchase or to promote a particular product. It is not the same as the MSRP (Manufacturer's Suggested Retail Price), sticker price, or dealer holdback.

Question 6

Dividing the price of a product by the number of times it will likely be used provides its ______ and provides a way to compare among competing purchase options.

Accepted Answer

Cost-per-use is the most appropriate option as it helps determine the overall value of a product by dividing the price by the number of times it can be used. This calculation can help a buyer compare the value of competing purchase options. The other options, item price, bottom line, and unit price may all provide some information about the cost of a product, but they do not provide an accurate representation of the overall value of a product.

Question 7

Owing more on a vehicle loan than the vehicle is actually worth is called being

Accepted Answer

Being upside down on a vehicle loan means the borrower owes more on the loan than the vehicle is currently worth. This can be a risky financial situation as it may be difficult to sell the vehicle or refinance the loan.

Question 8

Linda would like to purchase a stationary bike for $425.She thinks she will use the bike four days a week over the next eight years.What is Linda's cost per use?

Accepted Answer

To find the cost per use, we need to divide the total cost by the total number of times Linda will use the bike.

Total cost = $425
Total number of uses = 4 times a week x 52 weeks x 8 years = 1664

Cost per use = $425/1664 ≈ $0.255
Rounding to the nearest cent, we get $0.26 per use. Therefore, the best answer choice is (C).

Question 9

Shad wants to consider the cost per use of a high-end,desk-top computer server he is considering for his web site business.The computer costs $3,750 and has a life expectancy of four years.If Shad feels he would use the computer three days a week,on average,what is Shad's cost per use?

Accepted Answer

First, calculate the total number of uses over the four years. With 3 days a week for 52 weeks a year, that's 3 * 52 = 156 days a year. Over four years, that's 156 * 4 = 624 uses. Then, divide the total cost by the number of uses: $3,750 / 624 = $6 per use.

Question 10

Preshopping research for new cars should focus on

Accepted Answer

When conducting preshopping research for new cars, it is important to focus on all of these factors: prices, trade-in value, and financing. Prices will help you determine the cost of the car and negotiate a fair price with the dealership. Trade-in value will help you determine the value of your current car and negotiate a fair price for it if you plan to trade it in. Financing will help you determine what options are available to you for paying for the car, such as loans or lease agreements. Therefore, all of these factors should be considered before making a purchase.

Question 11

Same as cash offers often carry the risk that

Accepted Answer

Same as cash offers typically involve an initial period without interest payments, but if the full payment is not made within the agreed time period, all prior interest may be owed. This means that the consumer could end up paying a higher overall cost if they do not make the full payment on time.

Question 12

Brian  has decided he would like to negotiate on a car with a $32,000 sticker price.If the dealer's cost on this car is 15 percent lower than the sticker price,Brian should be able to negotiate a price some what higher than

Accepted Answer

The dealer's cost is 15% lower than the sticker price of $32,000, which is $32,000 - ($32,000 * 0.15) = $27,200. Brian should aim to negotiate a price somewhat higher than the dealer's cost, which is $27,200.

Question 13

What does it mean in auto leasing and auto financing when you are said to be upside down?

Accepted Answer

Being upside down means that you owe more on the car than it is currently worth. This is common when the car depreciates faster than the loan or lease is being paid off.

Question 14

The true cost of an automobile to the dealer is

Accepted Answer

The true cost to the dealer is the invoice price minus any dealer discounts, as these discounts reduce the amount the dealer actually pays for the vehicle.

Question 15

The product that is the best buy will be the one with the

Accepted Answer

Acceptable quality at a fair price is the best buy because it provides a balance between quality and price.

Question 16

An automobile buyer can call the National Highway Traffic Safety Administration website www.safercar.gov to get information on government safety test results,recalls,and

Accepted Answer

The National Highway Traffic Safety Administration (NHTSA) website, safercar.gov, provides information related to vehicle safety, including government safety test results, recalls, and theft ratings. It does not provide information on car prices or financing.

Question 17

The true cost of a new automobile to the dealer is

Accepted Answer

The true cost of a new automobile to the dealer is not simply the invoice price, the manufacturer's suggested retail price, or the dealer holdback. It involves a combination of factors including but not limited to the invoice price, any holdbacks, rebates, incentives from the manufacturer, and other costs associated with acquiring and selling the vehicle.

Question 18

"Gap" insurance

Accepted Answer

The answer of "Gap" insurance
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Question 19

Auto leasing is becoming an attractive option and about ____ percent of new cars "sold" each year are actually leased.

Accepted Answer

The answer of Auto leasing is becoming an attractive option...

Question 20

What should buyers do before making a major purchase decision?

Accepted Answer

Comparison shopping allows buyers to compare prices, features, quality, and other important factors before making a major purchase decision. This helps them make an informed choice and get the best deal. Being impulsive or haggling without proper research can lead to regretful purchases and unnecessary expenses. Negotiation is also an important skill, but it requires some knowledge about the market and the product to be effective.

Quiz 8: Vehicles and Other Major Purchases