Chapter 16 Flashcards
The major expenses of owning and operating a vehicle include:
the cost of interest on a loan, operating costs and the purchase price.
Depreciation is the
decrease in the value of a vehicle
Paying for oil/gas/maintenance/and repair are all examples of:
operating costs for a vehicle
A smaller vehicle gets better
fuel mileage
A larger vehicle
has a great capacity for passengers and parcels than a smaller vehicle
An automatic transmission
is nearly as effective as a manual transmission
An alternate to buying a vehicle that is similar to buying a is
leasing a vehicle
A major disadvantage to buying a used vehicle from a private owner is that
there will seldom be a warranty (will not have a warranty).
The average price paid to dealers for a given type and model is published in:
the blue book (kelly blue book)
When possible, how could you verify the odometer reading on a used vehicle?
Talk to the previous owner
Before buying a used vehicle always:
test drive the vehicle
With the engine running, a steering system:
should be firm
If the used vehicle passes your tests, you should:
have a mechanic look at it
When buying a used vehicle, to make sure that the seller will pay for any necessary repairs, you:
can have the repairs written into the sales agreement
A state law requires you to prove you can pay for damages you cause in a collision is a:
financial responsibility law