Consumer Mindset
True or False: Buying a candy bar at the checkout is an example of objective decision-making.
Answer: False (It is an impulse buy).
Which of these is an "ongoing cost" of owning a car? A) Sales tax, or B) Monthly insurance payments.
Answer: B) Monthly insurance payments.
Before going to a dealer, you should get "pre-approved" for a loan to become a: A) Lease holder, or B) Cash buyer.
Answer: B) Cash buyer.
If you sign a contract "as is," who pays for a broken alternator one week later? A) The dealer, or B) You.
Answer: B) You.
What is the very first step when you have a complaint? A) File a lawsuit, or B) Return to the place of purchase.
Answer: B) Return to the place of purchase.
Why does "Information is Power" help a buyer? A) It makes the car faster, or B) It helps avoid deceptive sales tactics.
Answer: B) It helps avoid deceptive sales tactics.
True or False: You build equity in a car when you lease it.
Answer: False (You build equity when you purchase/loan).
Which document would tell you if a used car was previously in a flood? A) A warranty, or B) A vehicle history report.
Answer: B) A vehicle history report.
True or False: A warranty is a guarantee that the manufacturer will fix certain defects for a set time.
Answer: True.
If the store manager can't help you, the next step is to: A) Call the police, or B) Contact company headquarters.
Answer: B) Contact company headquarters.
What is the main goal of comparison shopping? A) To find the best value, or B) To buy the most expensive model.
Answer: A) To find the best value.
Registration fees and license fees are examples of: A) Fixed costs, or B) Variable costs.
Answer: A) Fixed costs.
True or False: Used cars generally depreciate faster than new cars.
Answer: False (New cars depreciate much faster).
If a manufacturer sells a "lemon" (a car that can't be fixed), what laws protect the consumer? A) Lemon laws, or B) Cooling-off rules.
Answer: A) Lemon laws.
Which process results in a decision that you must legally follow? A) Mediation, or B) Arbitration.
Answer: B) Arbitration.
An advertisement lists a car for $5,000, but when you arrive, they say it's "sold" and show you a $15,000 car. This is: A) Good business, or B) Bait and switch.
B) Bait and switch.
Fuel and tire rotations are examples of: A) Fixed costs, or B) Variable costs.
Answer: B) Variable costs.
What does a "salvaged title" on a history report indicate? A) The car is brand new, or B) The car has a history of severe damage.
Answer: B) The car has a history of severe damage.
The "Cooling-off" rule is most likely to apply to: A) A car bought at a dealership, or B) A purchase made at a consumer's home.
Answer: B) A purchase made at a consumer's home.
Which option is for a large group of people with the same complaint? A) Small claims court, or B) Class-action suit.
Answer: B) Class-action suit.
True or False: Independent testing organizations are usually influenced by a company's marketing department.
Answer: False (They provide unbiased and objective data).
Why is depreciation a major factor for new car buyers? A) The car gains value, or B) The value drops significantly the moment you drive it off the lot.
Answer: B) The value drops significantly.
A used car might be a better financial choice because: A) It has a higher initial price, or B) You lose less money on the car's value over time.
Answer: B) You lose less money over time.
True or False: Once you sign a contract, you are legally bound by its provisions.
Answer: True.
True or False: You typically need a lawyer to resolve a case in small claims court.
Answer: False (It is designed to be used without a lawyer).