Vehicle and Other Major Purchases

Flashcards about vehicle purchases

What is a 'need'?

Necessity, like food and shelter

What is a 'want'?

Unnecessary but desired purchase. Most purchase decisions are these.

What is preshopping research?

Gathering information before interacting with sellers.

What is the Manufacturer's Suggested Retail Price (MSRP)?

Suggested initial asking price.

What is the dealer invoice price?

Amount the manufacturer charges the dealer.

Name some sources for vehicle price information.

Edmunds, Kelly Bluebook, National Automobile Association

What is comparison shopping?

Comparing products/services to find the best buy.

What is a 'best buy'?

Product/Service with acceptable quality at a fair or low price.

Where to check government safety test results?

www.nhtsa.gov

Where to check vehicle safety recalls?

www.safercar.gov

Where to research interest rates for all types of loans?

www.bankrate.com

What are rebates and incentives?

Refund of part of the purchase price.

What is leasing?

Renting a product; ownership remains with the lease grantor.

What is an open-end lease?

Lesse must pay difference between projected residual value and actual market value at lease end.

What is a closed-end or walkaway lease?

Lessee pays no charge if end-of-lease market value is lower than projected residual value.

What is a disposition fee?

Charge assessed when turning in a vehicle at lease end.

What is an early termination charge?

Charge if lessee turns car in before lease end.

What is a warranty?

Guarantee regarding the condition of a product.

What is an implied warranty?

Product is warranted to be suitable for sale and work effectively.

What is an extended warranty / service contract?

Agreement to repair/replace product components for a specified period.

What is a full warranty?

Product fixed at no cost within a reasonable time; defective product replaced or money returned.

What is a limited warranty?

Warranty offering less than the conditions for a full warranty (e.g., free parts, not labor).

What is negotiating (or haggling)?

Discussing terms of agreement with a seller on higher-priced items.

What is redress?

Process of righting a wrong

What is mediation?

Neutral third party helps consumer and seller reach agreement.

What is arbitration?

Neutral third party reviews dispute and issues a binding ruling.

What are Lemon Laws?

Laws providing guidelines for arbitrators to order buyback of a “lemon.”

What is Small-Claims Court?

State courts resolving civil matters without attorney assistance.