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Consumer Man: Buying a Car
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Lemon Law is designed to protect consumers from unsafe and defective new cars.
 
True
 
False
Invoice price and base price are identical.
 
False
 
True
The average depreciation of a new car is 20% loss of value in the first year.
 
True
 
False
Before buying a used vehicle, it is a good idea to have it inspected by an independent source.
 
True
 
False
You should investigate the cost of insurance before making a final decision on purchasing a vehicle.
 
True
 
False
Purchasing a used can can save you an average of 50%.
 
True
 
False
The consumer has the most important negotiating "tool."
 
True
 
False
When a trade-in is part of a vehicle purchase, the dealer will offer you the best price.
 
False
 
True
Once you have negotiated the price of the vehicle you want, go to the bank to discuss financing options.
 
False
 
True
When buying a vehicle, begin your negotiations with the invoice price.
 
True
 
False
When buying a vehicle, one of the most important parts of getting a "good deal" is making the monthly payments are affordable
 
False
 
True
Document that shows legal ownership of a vehicle
 
title
 
recall
These state laws protect buyers when vehicles have serious defects
 
lemon laws
 
FTC Uses Car Rule
Service contract that provides for no cost or low cost vehicle repair
 
extended repair
 
factory warranty
Estimated trade-in worth of a used vehicle as published in a guide by businesses such as Kelly Blue Book
 
book value
 
invoice price
 
base price
Cost of a vehicle with standard equipment
 
base price
 
invoice price


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