Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
What is a vehicle's cost of ownership made of?
Choose wisely. There is only one correct answer.
The various expenses you will pay for the vehicle over the time that you own it. Cost of ownership takes into account any costs you will pay while owning it.
2.
When it comes to the real price of a new car, the price that a dealer pays is usually lower than the invoice price shown because of dealer _______ .
Choose wisely. There is only one correct answer.
All of the above. Manufacturers will offer rebates or allowances on certain car models, and dealers can earn incentive awards based on their sales results. All of these factors serve to lower the dealer's cost.
3.
Which of the following prices on a new vehicle reflects what the dealer bought it for from the manufacturer?
Choose wisely. There is only one correct answer.
Invoice price. This is what the manufacturer charges the dealer. The dealer, in turn, will charge you something either more or less than this.
4.
The cost of ownership of a vehicle is the same as the price you paid for it.
Choose wisely. There is only one correct answer.
False. The cost of ownership is the various expenses you will pay for the vehicle over the time that you own it.
5.
When negotiating the price of a new car, which starting point is likely to save you the most money?
Choose wisely. There is only one correct answer.
The dealer's cost. The dealer's cost is what the dealer paid the manufacturer for it. Negotiating up from this, rather than down from the asking price, may save you more money.