CM - Unit 9 Quiz

Match Em Up! 1. The _ is the price of a vehicle’s engine, frame, and any other stand equipment for a particular model. Base Price 2. A _ states that the insured is required to pay a certain amount before the insurance company pays. Deductible 3. _include extra equipment on a vehicle that aren’t included in the base price, such as a sunroof, air conditioning, and tinted windows. Options 4. A _is the cost of shipping a vehicle from the factory to the dealer. Destination Charge 5. A _ is the total price of a vehicle, including the base price, options, and destination charge. Sticker Price 6. You _ a vehicle for a short period of time and pay with a daily rate. Rent 7. _ are published monthly and give the average prices for vehicles that were purchased from dealers during the previous month. Used-Vehicle Guides 8. You purchase _ for financial protection against accidents that cause bodily injury and property damage. Liability Insurance 9. You purchase _ for protection from losses due to fire, vandalism, theft, and other causes. Comprehensive Insurance Match Em Up! 10. You purchase _ that pays to repair a vehicle if it’s involved in an accident. Collision Insurance 11. The _ is the price actually paid for a vehicle by the dealer, usually expressed as a percent. Dealer's Cost 12. The _ is determined by the age, size, and value of your vehicle (insurance rating group) as well as the amount of coverage you want. Annual Base Premium 13. The _ is the actual annual cost, which depends on the annual base premium and the driver-rating factor. Annual Premium 14. _ are vehicle costs that increase the more you drive, such as gasoline and tires. Variable Costs 15. Your _ is determined by your age, marital status, the amount you drive, etc. Driver-Rating Factor 16. _ are vehicle costs that remain the same no matter how often you drive, such as insurance or vehicle registration. Fixed Costs 17. A decrease in the value of a vehicle because of its age or condition is _. Depreciation 18. Renting a vehicle long term is called a _. Lease Fill It In! 19. Timothy Darling wants to buy a new car. He has been pricing a new car that has a base price of $12,740.00. He is interested in several options that total $2,326.54. The destination charge is $354.00. Find the sticker price.Sticker Price: $15,420.5420. Hal O’Brien wants to purchase a new sports car. The car has a base price of $15,000, options totaling $3,190, and a destination charge of $690. He read in a consumer magazine that the dealer’s cost for the car was about 90% of the base price and 87.5% of the options price. What should he estimate as the dealer’s cost?Dealer's Cost: $16,981.2521. Sheryl Edwards has a driver-rating factor of 2.1. Her insurance includes 100 bodily injury and $25,000 property damages. Her vehicle is in age group D and insurance-rating group 14 (d, 14). She has a $50-deductible comprehensive and $50-deductible collision insurance. What is her annual base premium? What is her annual premium?Annual Base Premium: $622.40Annual Premium: $1,307.0422. Yvette Ramirez uses her car to drive to and from work. Her driver-rating factor is 2.65. Her insurance coverage includes 100 bodily injury and $100,000 property damage. Her car is in age group A and insurance-rating group 14. What is her annual base premium? What is her annual premium?Annual Base Premium: $702.00Annual Premium: $1,860.3023. Jackson McCormick purchased a used car a year ago. He drove 9,564 miles during the year and kept a record of all his expenses. He figured the annual variable cost to be $1,742.90. His annual fixed costs were $885.44. Find the total annual cost and the cost per mile.Total Cost of Ownership: $2,628.34Cost per mile: $0.2724. Two years ago Ernest Dorsey purchased a 1997 vehicle for $8,000, and it is worth $6,500 today. Last year he drove it 14,469 miles and kept a record of all his expenses. His variable costs included gasoline, $1,629.56; oil changes, $245.98; and repairs, $678.11. His fixed costs were insurance, $1,105.32; and license, $85.00. What is the depreciation? What is the cost per mile?Depreciation: $750.00Cost Per Mile: $0.3125. Penny Fountain leased a vehicle. She pays $433.50 per month for 48 months. Her deposit was $2,600. She paid a $125 title fee and a $55 license fee. What is her total lease cost?Total Lease Cost: $23,58826. Alicia Harper has an open-end lease for a SUV, which she uses for her flower-delivery store. The lease costs $320 a month for 60 months. She paid a deposit of $2,500, a title fee of $120, and a license fee of $115. What is the total lease cost?Total Lease Cost: $21, 935 Fill It In! Answer the questions in the space provided.Number your responses in the section where you can type. 27. Mrs. Co9 is looking at buying a base model truck. List five features that will be expected in it:a)b)c)d)e)28. Mrs. Co9 decides the base model is too boring and decides he needs some options included. List five features he might consider for options:a)b)c)d)e)29. Where would you expect to find the “sticker price” of a vehicle? (be specific)30. List three fixed costs associated with owning and maintaining a vehicle.a)b)c)31. List three variable costs associated with owning and maintaining a vehicle.a)b)c) 32. Given the three types of insurance (liability, comprehensive, and collision), what is the minimum required by law to have? Liability Comprehensive Collision All of the above