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The Car Buying Experience Trivia Quiz

Considering buying a new or used car in the United States? Here is some information that you should know! It helped me buy my truck- a '99 Toyota Tacoma- at a very good price!

A multiple-choice quiz by crisw. Estimated time: 4 mins.

Author
crisw

Time
4 mins

Type
Multiple Choice

Quiz #
9,010

Updated
Jul 23 22

# Qns
10

Difficulty
Average

Avg Score
6 / 10

Plays
3343

One at a Time - Single Page - Timed Game

Question 1 of 10

1. When you go shopping for a new car, you see a sticker that gives you the MSRP. What does MSRP stand for? Hint

My, Such a Ripoff Price!

Manufacturer's Suggested Retail Price

Mandated Standard Retail Price

Manufacturer's Standard Retail Price

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Question 2 of 10

2. As a rule, when buying a new car, is the MSRP a reasonable price for you to pay?

Yes

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Question 3 of 10

3. What is the price called that the dealer supposedly paid for the car? Hint

Dealer preferred price

MSRP

Factory invoice price

Actual dealer cost

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Question 4 of 10

4. As a rough rule, what is a reasonable price to expect to pay for a new car? Hint

5 percent less than the MSRP

Whatever the dealer asks!

Factory invoice price

5 percent more than the factory invoice cost minus dealer incentives

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Question 5 of 10

5. Every car made has a unique number that identifies it. What is this number called? Hint

AIN

VIN

UVI

CIN

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Question 6 of 10

6. What is 'dealer holdback'? Hint

The deliberate practice of holding popular vehicles back so demand will increase

A percentage of the MSRP or invoice of a new vehicle that is paid to the dealer by the manufacturer

The practice of not revealing all the information about a car

When you believe that a dealer is not being honest with you

7. You decide to purchase a new car, fill out all the paperwork, and take the car home. The next day, you decide that you made a terrible mistake. In most states, can you cancel your deal for a hit in your pocket book?

Yes

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Question 8 of 10

8. You are contemplating buying a used car. What is the correct title of the source you can consult to determine prices on such a car? Hint

Kelly Blue Book

Kelley Blue Book

Kelley's Blue Book

Kelly's Blue Book

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Question 9 of 10

9. Must all used cars be sold with a warranty?

Yes

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Question 10 of 10

10. Some car dealerships offer 'no haggle' pricing. Which of the following dealerships used to sell its cars only at sticker price, without haggling? Hint

Mitsubishi

Kia

Daewoo

Saturn

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Quiz Answer Key and Fun Facts

1. When you go shopping for a new car, you see a sticker that gives you the MSRP. What does MSRP stand for?

Answer: Manufacturer's Suggested Retail Price

This is the price that the car dealer wants to charge you- and it's too high!

2. As a rule, when buying a new car, is the MSRP a reasonable price for you to pay?

Answer: No

This is an inflated price. Usually, cars sell at MSRP only if they are extremely popular and in limited supply, such as the 2000 Chrysler PT Cruiser.

3. What is the price called that the dealer supposedly paid for the car?

Answer: Factory invoice price

It's a lot less than the MSRP!

4. As a rough rule, what is a reasonable price to expect to pay for a new car?

Answer: 5 percent more than the factory invoice cost minus dealer incentives

To calculate a reasonable price for the car, subtract dealer incentives and holdback from the invoice price and offer 5 percent over that.

5. Every car made has a unique number that identifies it. What is this number called?

Answer: VIN

Vehicle Identification Number. You can use it to track important things about the vehicle, such as whether it's ever been sold under a salvage title.

6. What is 'dealer holdback'?

Answer: A percentage of the MSRP or invoice of a new vehicle that is paid to the dealer by the manufacturer

Dealer holdback is generally 2-3 percent. It guarantees the dealer a profit even if they sell the car at factory invoice price.

Answer: Yes

There is a U.S. federal "cooling-off" period for many purchases, but that does not apply to motor vehicles. Some dealerships will allow you to return your new purchase, but not without charging you some fees.

8. You are contemplating buying a used car. What is the correct title of the source you can consult to determine prices on such a car?

Answer: Kelley Blue Book

You can find both wholesale and retail prices.

9. Must all used cars be sold with a warranty?

Answer: No

Nope. It is perfectly legal to sell a used car 'as-is'.

10. Some car dealerships offer 'no haggle' pricing. Which of the following dealerships used to sell its cars only at sticker price, without haggling?

Answer: Saturn

Saturn, a division of General Motors, was closed down in 2009.

Source: Author crisw

This quiz was reviewed by FunTrivia editor stedman before going online.
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