Question 1

Comparison shopping will be beneficial for buying all of the following except

Accepted Answer

A)   A hot dog at the baseball park.
B)   Milk and bread that you buy weekly.
C)   A pet dog.
D)   Musical instrument accessories that you purchase online.
E)   An expensive television.

Question 2

A convenience option that consumers may look for in a vehicle is special trim.

Accepted Answer

A) True 
 B)False

Question 3

People do not anticipate problems with purchases but should be prepared for them.

Accepted Answer

A) True 
 B)False

Question 4

When purchasing a used vehicle,it is a good idea to

Accepted Answer

A)   Take out a loan for the entire cost.
B)   Accept the dealer at his word about the condition of the vehicle.
C)   Have a trained and trusted mechanic of your choice check out the vehicle.
D)   All of these are correct.
E)   None of these is correct.

Question 5

A clear statement of a problem is "I need to have a car."

Accepted Answer

A) True 
 B)False

Question 6

How is a lease different from a purchase?

Accepted Answer

Although the cost of leasing m...

Question 7

All of the following are variable operating costs for a vehicle except

Accepted Answer

A)   Depreciation.
B)   Gasoline and oil.
C)   Maintenance and repairs.
D)   Parking.
E)   Tires.

Question 8

Negotiation activities are part of the ____ phase of the decision-making process.

Accepted Answer

A)   evaluating alternatives
B)   postpurchase activities
C)   preshopping activities
D)   selection and purchase
E)   More than one of these is correct.

Question 9

Which of the following is a disadvantage of a car lease?

Accepted Answer

A)   A large down payment is required.
B)   At the end of the lease, you have no ownership interest in the vehicle.
C)   The capitalized cost is usually lower than the list price.
D)   Monthly lease payments are usually lower than monthly financing payments.
E)   You can usually obtain a more expensive vehicle than with an outright purchase.

Question 10

What are five factors that affect the operating costs of a vehicle?

Accepted Answer

The following are all acceptable:
• Depr...

Question 11

Prices at the local quick market (convenience store)will probably be lower than at the regional big box retailer (grocery store).

Accepted Answer

A) True 
 B)False

Question 12

A variable operating cost for a vehicle is

Accepted Answer

A)   Depreciation.
B)   Insurance.
C)   Interest on an auto loan.
D)   License and registration.
E)   Maintenance and repairs.

Question 13

Karen bought a mixer.She received a warranty that covers only certain aspects of the product.If the product fails,she may be required to pay part of the costs for shipping or repairs.Which of the following warranties does she have?

Accepted Answer

A)   "As-is" warranty
B)   Express warranty
C)   Full warranty
D)   Implied warranty
E)   Limited warranty

Question 14

Properly maintaining and operating the product is part of the ____ phase of the decision-making process.

Accepted Answer

A)   evaluating alternatives
B)   postpurchase activities
C)   preshopping activities
D)   selection and purchase
E)   More than one of these is correct.

Question 15

The average used car costs about _______ less than the average new car.

Accepted Answer

A)   $0
B)   $1,000
C)   $10,000
D)   $25,000
E)   $50,000

Question 16

Mike bought a new car.His new car warranty probably included all of the following except

Accepted Answer

A)   Coverage of basic parts against defects.
B)   Corrosion warranty.
C)   Extended coverage for air conditioning.
D)   Possibility to transfer the warranty to other owners of the car (additional charges may apply) .
E)   Power train coverage.

Question 17

All of the following are fixed operating costs for a vehicle except

Accepted Answer

A)   Depreciation.
B)   Insurance.
C)   Interest on an auto loan.
D)   License and registration.
E)   Maintenance and repairs.

Question 18

Why is it a bad idea to mention the trade-in vehicle early in the purchase process?

Accepted Answer

It can confuse the p...

Question 19

One of the first steps in a car purchase negotiation should be a discussion of the trade-in vehicle.

Accepted Answer

A) True 
 B)False

Question 20

The settlement of a difference by a mediator is legally binding.

Accepted Answer

A) True 
 B)False

Exam 6: Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

All of the following are variable operating costs for a vehicle except

Correct AnswerverifiedShow Answer

People do not anticipate problems with purchases but should be prepared for them.

Correct AnswerverifiedShow Answer

A variable operating cost for a vehicle is

Correct AnswerverifiedShow Answer

The settlement of a difference by a mediator is legally binding.

Correct AnswerverifiedShow Answer

All of the following are fixed operating costs for a vehicle except

Correct AnswerverifiedShow Answer

Karen bought a mixer.She received a warranty that covers only certain aspects of the product.If the product fails,she may be required to pay part of the costs for shipping or repairs.Which of the following warranties does she have?

Correct AnswerverifiedShow Answer

The average used car costs about _______ less than the average new car.

Correct AnswerverifiedShow Answer

What are five factors that affect the operating costs of a vehicle?

Correct AnswerverifiedThe following are all acceptable:• Depr...View AnswerShow Answer

How is a lease different from a purchase?

Correct AnswerverifiedAlthough the cost of leasing m...View AnswerShow Answer

Properly maintaining and operating the product is part of the ____ phase of the decision-making process.

Correct AnswerverifiedShow Answer

Mike bought a new car.His new car warranty probably included all of the following except

Correct AnswerverifiedShow Answer

One of the first steps in a car purchase negotiation should be a discussion of the trade-in vehicle.

Correct AnswerverifiedShow Answer

Prices at the local quick market (convenience store)will probably be lower than at the regional big box retailer (grocery store).

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a car lease?

Correct AnswerverifiedShow Answer

Negotiation activities are part of the ____ phase of the decision-making process.

Correct AnswerverifiedShow Answer

Comparison shopping will be beneficial for buying all of the following except

Correct AnswerverifiedShow Answer

When purchasing a used vehicle,it is a good idea to

Correct AnswerverifiedShow Answer

Why is it a bad idea to mention the trade-in vehicle early in the purchase process?

Correct AnswerverifiedIt can confuse the p...View AnswerShow Answer

A convenience option that consumers may look for in a vehicle is special trim.

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A clear statement of a problem is "I need to have a car."

Correct AnswerverifiedShow Answer

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The following are all acceptable:
• Depr...
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Although the cost of leasing m...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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It can confuse the p...
View Answer

Correct Answer
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Correct Answer
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