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