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Transportation
Ch 19 Personal Finance
Term | Definition |
---|---|
A previously owned car that received a thorough mechanical and appearance inspection along with necessary repairs and replacements | Certified used car |
Features available with a particular car | Options |
A unique number assigned by the automobile industry and used to identify an individual auto | Vehicle Identification Number (VIN) |
Prohibits the borrower from paying off an auto loan early | Prepayment penalty |
The price or value of the vehicle on which an auto is based | Capitalized cost |
The items that reduce the monthly payment on an auto lease, such as a cash down payment, trade-in allowance, and rebate | Capitalized cost reduction |
The worth of a car at the end of an auto lease | Residual value |
The interest paid on an auto lease, usually stated as a decimal | Money factor |
A low-powered motorized two-wheeler with an engine capacity less than 50cc | Moped |
A two-wheeled motor vehicle with an engine capacity of 50cc to 250cc | Motor scooter |
Owning a car is a relatively inexpensive way to get where you want to go. T/F | False |
Carpooling can save energy, minimize parking, and reduce traffic congestion. T/F | True |
Extra features increase the price of a car T/F | True |
To receive auto warranty benefits, you usually must maintain the as specified in the owner's manual T/F | True |
Auto warranties usually run for three years or for the first 36,000 miles T/F | False |
An advantage of buying a used car rather than a new car is the lower price T/F | True |
An independent prepurchase inspection of a used car is NOT necessary if you deal with a reliable dealer T/F | False |
The purchase price is the only cost you really need to seriously consider when buying a car T/F | False |
Most buyers borrow part of the purchase price of the car T/F | True |
Auto financing costs about the same regardless of who provides the financing T/F | False |
It is a good idea to line up a reliable service center before you have car trouble T/F | True |
Licensing, registration, and traffic laws for bicycles, mopeds, and motorcycles vary from state to state T/F | True |
Which of the following is NOT a chief advantage of mass transit over other forms of transportation? | Flexible door-to-door service |
Public transportation is a good choice for all but those ____ | Whose job requires driving |
For city dwellers, automobiles generally are ____ | Inconvenient because of traffic and parking |
Deciding on the best means of transportation depends on ____ | All of the above |
In the auto marketplace, a LEMON is ____ | A used car with serious problems that are costly to repair |
When buying a used car, it is particularly important to ____ | Get a prepurchase inspection by a reliable automotive technician |
The Buyers Guide sticker on the window of a used car describes ____ | Warranty coverages or lack of it |
The cost of financing a car depends on ____ | The principal, the APR, and the length of the repayment period |
You can reduce the cost of auto financing by ____ | Increasing the amount of your down payment |
The Truth in Lending Law requires ____ | Creditors' to provide borrowers with a complete written account of credit terms and costs |
In most states, bicyclists are required to ____ | Wear a helmet |
Compared to cars, motorcycles ____ | Costs more to insure |
Differentiate between buying a car and leasing a car. | Buying: Don't have to put anything down and no limitation on milage Leasing: Do not own it when loan is up, lower monthly payment, and milage limit |
Describe what the four-point check includes and when it should be done | 1. sit in drivers seat 2. test drive 3. check under hood 4. research |