A disadvantage of buying a new car is it loses value faster than a used car. This is called
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  • Capital gain
  • Inflation
  • Depreciation
  • Amortization
Which is NOT an expense of owning a car?
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  • Repairs & maintenance
  • Gasoline
  • License & registration fees
  • Utilities
Financing a vehicle has advantages & disadvantages. Which is a disadvantage?
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  • You need a small amount of money upfront compared to buying the car
  • You pay interest and fees on borrowed money
  • Your credit score is not taken into consideration
  • You have more flexibility to pay the car off over time
What is the purpose of a Carfax?
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  • Shows the true market value of the vehicle being purchased
  • Calculates costs of the vehicle's maintenance & repairs
  • Offers financing options to the consumer
  • Supplies a vehicle history report to individuals
When trying to haggle the price of a used car, who should name the first price?
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  • The salesman
  • You
It is important to comparison shop when purchasing a car. What does comparison shop mean?
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  • Always buy from a local dealership
  • Take several photos to use for comparison
  • Compare the true market value of every vehicle
  • Compare the price & quality from different vendors
What document is often called a "pink slip"?
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  • Proof of insurance
  • The title
  • A cashier's check
  • Car sales receipt
This type of law provides remedy for purchases of cars that fail to meet standards of quality.
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  • Kelley Blue Book
  • Lemon Law
  • Edmunds Law
  • DOT Law
True or False: Buying a new car is always better than buying a used car.
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  • True
  • False
One of the first steps in shopping for a vehicle is to create a(n)
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  • Budget
  • List of wants
  • Insurance claim
  • Email account
The term __________ refers to a decrease in the value of property as a result of use and age
  • capitalized cost reduction
  • decprecitation
  • amortization
  • residual value
The _______ states that when a motor vehicle needs repairs three times or more for the same problem, the repairs provide proof of the ineffectiveness of the manufacturer's warranty.
  • Truth in Lending Act
  • Lemon Law
  • Magnuson-Moss Warranty Act
  • FTC Used-Car Rule
The most common form of auto financing is a(n) _______.
  • lease
  • rental agreement
  • installment loan
  • cash sale
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