Money Matters: Ch. 14: Buying & Owning a Vehicle - Quiz
True/False
Indicate whether the
statement is true or false.
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Ch. 14: Buying & Owning a
Vehicle
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1.
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Before you start shopping for a
car, determine how much you can afford to spend.
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2.
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When you compare the prices of
different vehicles, be sure to compare models that have the same options.
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3.
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Preapproval combines the
financing of your car with the process of negotiating the car’s price.
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4.
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Experts recommend
never buying a vehicle on your
first visit to the dealership.
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5.
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A used vehicle inspection
typically costs about $500.
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6.
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Kelley Blue
Book publishes a popular
vehicle pricing guide for new cars
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7.
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You should negotiate the price
for a new car separately from the price of your trade-in.
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8.
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You will probably get more
money for your used car if you sell it yourself rather than trading it in at a
dealership.
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9.
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Most car buyers pay cash for
their cars to avoid interest charges.
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10.
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All used car buyers are
protected by the FTC's Used Car Rule.
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11.
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Most people spend more of their
income on transportation than on any other item.
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12.
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Assigned risk pools are
state-run programs that offer very low insurance rates to people who have excellent driving
records.
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13.
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All states charge fees for
title and registration.
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14.
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Typically, you can expect your
vehicle to require a major engine tune-up every 3,000 miles or so.
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15.
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Generally, cloth vehicle
upholstery is more durable than vinyl.
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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Ch. 14: Buying & Owning a
Vehicle
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16.
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Monthly car payments should be
no more than _____ percent of the money you have left after paying all of your other
expenses.
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17.
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A used car
a. | is usually about the same price as a
new car. | b. | is likely to need more repairs than a new
car | c. | loses at least half of its market value as soon as you drive it off the
lot. | d. | can never be purchased with a
warranty. |
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18.
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All of the following websites
allow you to search for specific models of new and used cars available in your area
except
a. | Auto
Trader | c. | Kelley Blue
Book | b. | Cars.com | d. | Consumer Reports |
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19.
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Which of the following vehicles
would most likely have the highest insurance rate?
a. | fuel-efficient compact
car | c. | new sports
car | b. | four-door family sedan | d. | used mini-van |
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20.
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With a vehicle’s VIN, you
can determine all of the following except
a. | how quickly the vehicle can go from
0 to 60 MPH. | b. | whether the vehicle has been in a serious
accident. | c. | how many times the vehicle has been sold. | d. | the mileage readings each time the vehicle was
sold. |
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21.
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Which of the following can tell
you if the head gasket on your vehicle’s engine needs to be replaced?
a. | an oil consumption
test | c. | a timing gear
test | b. | a vehicle emission test | d. | a compression test |
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22.
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A fair price for a new car is
likely to be about _____ percent above the _____ price.
a. | 3 to 6;
invoice | c. | 3 to 6;
sticker | b. | 8 to 10; invoice | d. | 8 to 10; sticker |
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23.
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In most cases, the most
important factor in determining a car’s resale or trade-in value is
a. | mechanical
condition. | c. | the
vehicle’s fuel efficiency. | b. | the vehicle’s age. | d. | model popularity. |
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24.
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Typically, you should expect to
change the oil in your vehicle every three months or every _____ miles, whichever comes
first.
a. | 3,000 to
5,000 | c. | 10,000 to
15,000 | b. | 7,000 to 10,000 | d. | 20,000 to 30,000 |
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25.
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Each of the following is a good
driving habit except
a. | don’t shift into a forward
gear while your vehicle is rolling backward. | b. | don’t turn the steering wheel when the vehicle is
motionless. | c. | race your engine as soon as you start the car, to warm it up more
quickly. | d. | never drive a car when the “check engine” light is
on. |
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Numeric Response
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Ch. 14: Buying & Owning a
Vehicle
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26.
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Sarah paid $18,444 for a new
car last week. This price was 6 percent above the vehicle’s invoice price. What was the dollar
amount of the invoice price?
(State your numeric
answer below, Hint: numbers only, no commas, 5 digits)
Formula:
Price of Car = Invoice Price +
Invoice Price(.06)
Price of Car = Invoice Price(1 + .06)
Price of Car/1.06 = Invoice
Price
$
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27.
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Suppose you offer a car
dealership $22,000 for a new vehicle. The salesperson says that she will sell you the vehicle for 3
percent more than your offer. If you agree, what are you going to pay for the
vehicle?
(State your numeric answer below, Hint:
numbers only, no commas, 5 digits)
Formula:
$22,000 x .03 = Percentage cost
$22,000 + Percentage cost = New sale price
offer
$
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28.
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When Jeremy filled his
car’s gas tank last week, his car had an odometer reading of 25,500. One week later, he
refilled the tank, which now has an odometer reading of 26,100. It took 25 gallons of gas to fill the
tank. How many miles does Jeremy’s car get per gallon?
(State your numeric answer below, Hint: numbers only, no commas, 2 digits)
Formula:
Current Odometer - Old Odometer = Miles driven
Miles driven / Gallons filled
= MPG
MPG
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29.
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Over the past five years,
De’Asia has put the following miles on her car:
Year 1: 10,000 miles
Year 2: 12,500
miles
Year 3: 8,000 miles
Year 4: 14,000 miles
Year 5: 13,500 miles
Over this period,
what is the average number of miles De’Asia drives her car annually?
(State your numeric answer below, Hint: numbers only, no commas, 5 digits)
Formula: (Y1+Y2+Y3+Y4+Y5)/5 = Average # of miles
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30.
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Last year, Caleb performed the
following maintenance to his car:
Four lube, oil, and filter jobs at $20/each
Two new tires
at $150/each
Radiator flush and new hoses and belts at $250
How much did Caleb spend on
maintaining his car last year?
(State your numeric
answer below, Hint: numbers only, no commas, 3 digits)
Formula:
(4x$20) + (2x$150) + $250 = Total yearly
Maintainance cost
$
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Matching
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Ch 14: Buying and Owning
Vehicles
Match the terms with their definitions
below. a. | sticker | f. | Dealer add-ons | b. | invoice | g. | polishing compound | c. | Preapproval | h. | hybrid | d. | depreciation | i. | title | e. | lemon | j. | vehicle
emission |
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31.
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__________ is the process of
getting a new- or used-car loan prearranged through your bank or credit union.
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32.
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Many states require vehicles
to pass a(n) __________ test, which verifies that a vehicle meets minimum clean-air
standards
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33.
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For a new car, the
manufacturer’s suggested retail price, or __________ price, is the price shown on the tag in
the car’s window.
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34.
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The price a dealer pays for a
new vehicle is called the __________ price.
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35.
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__________ are high-priced,
high-profit dealer services such as checking the air in the tires that add little or no value to your
vehicle.
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36.
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A vehicle with substantial
defects that the manufacturer has been unable to fix after repeated attempts is called a(n)
__________.
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37.
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A(n) __________ is a type of
vehicle that uses alternate energy sources, such as natural gas or battery power, in addition to
gasoline.
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38.
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A decline in the value of a
vehicle due to normal wear and tear is called __________.
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39.
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A car __________ is a legal
document that establishes ownership of the vehicle.
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40.
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A(n) __________ is a substance
that can smooth out surface scratches, scuffs, and stains from your car’s
paint.
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