...Dealer’s Guide to the Used Car Rule Federal Trade Commission 'HDU &DU 'HDOHU 7KH )HGHUDO 7UDGH &RPPLVVLRQ DQG WKH 1DWLRQDO ,QGHSHQGHQW $XWRPRELOH 'HDOHUV $VVR.LDWLRQ DUH SOHDVHG WR SURYLGH \RX ZLWK DQ XSGDWHG .RS\ RI $ 'HDOHU©V *XLGH WR WKH 8VHG &DU 5XOH 7KH 'HDOHU©V *XLGH LV SDUW RI D .RQWLQXLQJ SDUWQHUVKLS EHWZHHQ WKH )7& DQG 1,$'$ WR HGX.DWH WKH LQGXVWU\ DERXW .RPSOLDQ.H UHTXLUHPHQWV 1,$'$ XQGHUZURWH WKH .RVWV RI SULQWLQJ DQG GLVWULEXWLQJ WKH SUHYLRXV YHUVLRQ RI WKH 'HDOHU©V *XLGH DQG LW LV SURXG WR XQGHUZULWH WKRVH .RVWV IRU WKLV YHUVLRQ 7KLV 'HDOHU©V *XLGH GHILQHV WKH 5XOH©V UHTXLUHPHQWV H[SODLQV KRZ WR SUHSDUH DQG GLVSOD\ WKH %X\HUV *XLGH SURYLGHV D .RPSOLDQ.H .KH.NOLVW DQG LQ.OXGHV VDPSOH %X\HUV *XLGHV :H HQ.RXUDJH \RX WR XVH WKH 'HDOHU©V *XLGH DQG VKDUH LW ZLWK \RXU VWDII :KLOH .RPSOLDQ.H ZLWK WKH 8VHG &DU 5XOH LV UHTXLUHG E\ IHGHUDO ODZ LW DOVR .DQ KDYH ERWWRPOLQH EHQHILWV IRU \RXU GHDOHUVKLS 7KDW©V EH.DXVH LQIRUPHG .RQVXPHUV DUH PRUH OLNHO\ WR EH.RPH UHSHDW .XVWRPHUV DQG SURYLGH UHIHUUDOV WR \RXU EXVLQHVV ,I \RX KDYH TXHVWLRQV DERXW WKH 8VHG &DU 5XOH SOHDVH .RQWD.W -RKQ +DOOHUXG LQ WKH )7&©V 0LGZHVW 5HJLRQ DW ,I \RX ZRXOG OLNH DGGLWLRQDO .RSLHV RI WKH 'HDOHU©V *XLGH SOHDVH IROORZ WKH RUGHULQJ LQVWUX.WLRQV DW WKH HQG RI WKH ERRNOHW 6LQ.HUHO\ \RXUV - +RZDUG %HDOHV ,,, 'LUH.WRU %XUHDX RI &RQVXPHU 3URWH.WLRQ )7& 0L.KDHO 5 /LQQ ([H.XWLYH 9L.H 3UHVLGHQW 1,$'$ M ost car dealers who sell used vehicles must comply with the...
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...and numeric characters. No two VIN's are the same. - All cars and light trucks built after 1981 have unique 17-character "vin numbers" that contains valuable information about that vehicle's history. These numbers are called vehicle identification numbers (VIN #). - Smart car buyers are recognizing that "VIN" Numbers or "vehicle identification numbers" can provide essential information to help them make better decisions about cars, old and new. VIN numbers are unique 17-digit serial numbers assigned to all cars manufactured after 1981. Just as fingerprints, a car's VIN or vehicle identification number can provide information a car buyer can use to confirm the true history of the car. -VIN numbers are used to record everything that will ever happen to a car. When ever your vehicle is sold, involved in an accident, or involved in an insurance claim, or recalled, bureaus such as Carfax record that information in data bases. VIN's display a car’s uniqueness and manufacturer and provides a method to trace a car from the factory to the junkyard. Your VIN number can be used to track recalls, registrations, warranty claims, thefts and insurance coverage. A chain letter circulating claims that you should cover the VIN number of your car so that car thieves can't use it to duplicate your keys and steal your car. Key Point: The vast majority of cars are not stolen this way. The two most common tools for stealing your car are your own keys, or a screwdriver. Your car's VIN...
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...8. Moral hazard occurs when individuals tend to be very risky when there are protections if a loss occurs. This is more likely in indirect finance. For example, when an individual purchase a new car, they insure it and their policy dictates that if an individual accidentally hits their vehicle, they are obligated to a new vehicle. So after a few years and that individual gets tired of their vehicle and is desperately in need of a new one, they would intentionally drive a bit reckless to allow someone to hit their vehicle. Lemons problem can be both indirect and direct finance. It occurs when one party to a transaction do not have the same degree of information. The party with less information take a risk hoping that the “lemon” is a good buy. For example, in the used car industry, the seller has all the information about the car and may limit the actual reason as to why they are selling the car, the problems the car has etc. intermediaries in the financial market can reduce lemon problems by reducing the attractiveness of direct finance by offering more incencitives to individuals when acquiring finances, offer provision for information, enforce laws on information given ensuring individuals receives sufficient information. Financial intermediaries have expertise in assessing the risk of the applicant for funds that reduces adverse selection and moral hazard. They have easy access to various databases that provide information on both individuals and businesses, and they...
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...The Market for "Lemons": Quality Uncertainty and the Market Mechanism Author(s): George A. Akerlof Source: The Quarterly Journal of Economics, Vol. 84, No. 3 (Aug., 1970), pp. 488-500 Published by: The MIT Press Stable URL: http://www.jstor.org/stable/1879431 Accessed: 22/10/2010 23:04 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=mitpress. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The MIT Press is collaborating with JSTOR to digitize, preserve and extend access to The Quarterly...
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...Electric cars have been around for a long time. Even back in the 1960’s the automobile industry was dabbling with electric cars. Nevertheless, the idea of an electric car has been around for at least 50 years now, but the world has not totally accepted the electric car as being better for the world. This shows that it must not be better. In fact, electric cars are bad for the world for numerous reasons. These reasons are related to electric cars being a waste of time; electric cars still causing as much pollution as gas powered cars; electric cars affecting the cost and availability of electricity, electric cars taking too long to become cost effective and finally electric cars becoming a hazard overall, especially during a winter storm. Some may not care about protecting our world and the environment, but there are enough people who do care. If the electric car technology was truly better than gas powered car technology, it would have caught on by now. Since it has not caught on, surely that is enough evidence that we can quit trying to explore this option. There are countless other ways people can spend their time in the world and since this idea has not...
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...COMPOSITION AND COMMUNICATION I New or Used Car My daughter just got her driver’s license when she turned 18 years old now that she’s going to college and she is working a part time job, we are looking into different options of buying her either a new car or used car. We want to find the best car for her. Some of the factors we are considering are gas mileage, car repair bills, the reputation of the different dealerships, and would she be better off in a new car or a used car. We have fights everyday over to the use of my truck, if we were to get her a car of her own there would be no more fights. Regardless of what option we choose, new or used, it would still be new to her and she will be very happy about getting it. When she’s driving back and forth to school she is putting a lot of miles on a car. She has to go to school about twice a day for a short period of time. When she’s working, that’s not as bad as its, less than 2 minutes from our home. So on a normal day she starts outgoing to school, back home, where she does homework for about an hour, and then to work for 2 hours. After she’s done working she comes home and gets ready to go back to school for two more hours. With all the driving she does, we want to make sure she gets a car with good fuel performance. That way she’s not using all of her pay check to pay for gas. I don’t want her to buy a car and have to invest hundreds to thousands of dollars into fixing the car due to how much she has to drive it. Our...
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...Progress can be both good and bad, like everything the good is nearly always better than the bad. “Good” in this case it can be defined as “innovation that’s not only sustainable, but also restorative and resilient” (Hollender 2012, p6). Hollender expresses his opinions that there is no such thing as bad nowadays, instead it should be classified as “less bad” meaning the generation of less waste, less CO2, pollute less water and utilize a greater amount of recycled materials (Hollender 2012, p6). He expresses these views on his idea of “less bad” as the world has revolutionized itself to a point where that almost everything innovative that we now do will harm something else in a negative manner. This is evidently proven from the things that have been invented over time. Going back 100 years from now it is evident that changes have been significant everywhere across the world and in nearly every case it is the tools that we have shaped that are now shaping us, this is becoming a problem in many cases. Starting right back when the hammer was invented. It can be proven that the tools that we make definitely have an influence on the way we interact on a day-to-day basis. There is no specific date on when the hammer was first utilized or invented but it can be said that the cavemen used to use rocks to help them hit something with more force. Essentially this is what a hammer is used for nowadays but in a much more technical manner. Back when the cavemen were using the hammer...
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...uncertainty with an example of the market for used cars. A used car is a car that has had one or more registered owners and has inevitable wear and tear. There are good used cars and bad used cars (lemons). A lemon is an American term for a car that is found to be defective only after it is bought. Used cars that are defective are called lemons, and most defects are attributed to several non-traceable variables such as maintenance, accidents, and previous owner’s driving style. The consumer buying the used car cannot tell if the car is a good car or a lemon, because most of the mechanical parts are hidden from view and not easy to access for inspection, so they assume that they are getting a car of average quality. If a consumer were to try and sell a well-maintained good used car, they would only be able to get the price for an average used car, which would not make selling the good used car worthwhile. Therefore, owners of good used cars won’t place their cars on the used car market, which will reduce the average quality of cars on the market. This will make the average price fall due to lower quality cars on the market, and the market will decline until there is no more trade; the bad will drive out the good. III Response to Question 1 Information asymmetry is where one party has more or better information than the other. This creates an imbalance of power in transactions. In the used car example, the sellers knew what condition the used cars were in, so they knew more than the...
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...Q1 The case concerns about disposal of a capital asset. The vacant land, which is acquired by Colourvision Pty Ltd at $12,000,000 on 1 January 1986, is sold for $3,000,000 on 1 January 2014. As the land is acquired after 20 September 1985, the old law cannot apply, capital gains need to be caught by CGT according to Part 3-19(ss. 100-1- 121-435) and Part 3-3(ss. 122-1- 152-430). As all the discussion can be only in the progress based on a “CGT event”(s 102-20 ITAA97), and “CGT event” are always related to “CGT asset”. It is necessary to identify if the land belongs to CGT asset. In the case, although the land was supposed to build into a new factory but actually not, it is obviously that the vacant 5-hectare block of land is a tangible CGT asset according to the definition in s 108-5(1), which is defined as “any kind of property”. Concerning the case, among three different kinds of CGT assets, this land belongs to “ordinary” CGT assets (Subdiv 108-A). As mentioned, only a CGT event is able to trigger capital gain and capital loss. 54 recognized CGT events(s 104 of ITAA 1997) are listed in a table. The Colourvision case is about the acquisition and disposal of a land, which is also a CGT asset, so it is in respect of Event A1, which describe disposal of a CGT asset(s 104-10) and Event D1, which specify in creating contractual or other rights(s 104-35). To be specific, the timing of acquisition, is when creating contractual or other rights, and in this case, it is 1 January...
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...Research Paper Vehicle users who throw garbage out of the car windows exhibit no respect for themselves and for the environment. Submitted to Prof. Saima Bhaur 13th June, 2013 Acknowledgement It was a interesting and learning experience of doing this research.We would like to thanks specially to our Professor Saima Bhaur for giving her valuable suggestions and help while doing this research. We would like to thanks all the students who have filled the questionnaire. We are also thankful to the university for providing us great opportunity for doing this research. Finally we would like to thanks to our friends for their support. Abstract This is very important to know the effects of littering and garbage throwing out of cars. Why people do this? They are just careless about everything. They even do not know that throwing trash harms our environment and it is also harmful for the animals too. There are too many bad effects. The people who do this have no respect at all. This can be habitual. We have noticed that teenagers throw trash out of cars just for fun. They usually enjoy doing this. To know about all this we have conducted a quantitative research. We have conducted a survey consisting of questionnaire. Our sample size was fifteen. We have asked nine close ended questions relating to this problem to gather data. One question was open ended in which we have noticed different thinking about this issue. After doing all this research we have...
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...in to the frustrations of the drivers and cause crashes every single mile. The ratio of cars to crashes is about 50 crashes to every one car. The frustrating rush hours of Arizona are only undermined by the rest of the times where the lousy drivers are released. The driving education levels of our drivers is equivalent to that of a 1st grader. The dreadful driving of Arizona make you question who gave Arizona the right to distribute licenses. With Arizona drivers being on the loose it’s as if the cars are turned on, put into drive and then someone slams a brick into the gas pedal and hope for the best. The cars pretty much drive themselves as “drivers” pay more attention to other “more important” things. The piece of this that is most surprising is that these people are trusted by the state when they received their licenses. The novice drivers are bad enough now add up the all too common traffic jams and you have mayhem. With all the mayhem out on the streets it’s amazing to see that our population is still growing....
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...This paper will discuss the choice of capital structure in markets where there is information asymmetry. Particular reference is made to how debt is used as a signalling tool along with a discussion on debt maturity structure. The pecking order theory is examined. Finally this paper reveals empirical evidence of capital structure. Arnold Musadziruma 210525268 Clint Kruger 209541568 Kemsley Grantham 209538112 i “Seminar 4- Capital structure and information asymmetry (2013)” Abstract This study is going to discuss capital structure choices of companies in an environment of information asymmetry. Firstly we discuss information asymmetry and how firms attempt to avoid a pooling equilibrium by signalling the quality of the firm. Quality can be signalled through the use of debt. The use of long term debt is a sign that a firm can make the payment obligations of the long term debt which is shown to signal good quality. The pecking order theory makes use of a hierarchy of financing sources and indicates internally generated funds should be used first. Following this, short term debt should be used before long term debt because of the risk and costs involved. Due to the costs involved in issuing equity in an environment of information asymmetry, firms should make use of equity as a last resort. The maturity structure of debt should also match the maturities of those firms’ assets to reduce costs. Empirical evidence suggests there is no common result for which theory is followed...
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...Taxation for Business Decision Making (a) In this case, Colourvision is an Australian resident for taxation purposes and it received a capital gain generated from the sale of the land. This capital gain should be taxed under CGT. Rules for CGT 1. Capital gains from the realization of investment on assets that acquired on or after 20 September 1985 are caught by CGT. Relative law can be found in Part 3-1 (ss.100-1-121-35) and Part 3-3 (ss.122-1-152-430). 2. Section 102-5 contains the rule that net capital gains are included in the taxpayer’s assessable income. And section 102-15 contains the rule that net capital losses can be carried forward to offset future capital gains. 3. CGT is triggered by the happening of a CGT event. There are currently 54 kinds of CGT events (s.104 of ITAA1997) and each CGT event specifies the time of CGT event and how the capital gain is calculated. In this case, the sale of land in this case can be classified into CGT event A1, which is disposal of a CGT asset (s.104-10). The time of the CGT event A1 is when the taxpayer enter into the disposal contract (generally the date on the contract), not when the disposal asset is settled. If there is no disposal contract, CGT event occurs when the ownership changes. In this case, the time of disposal of the land is on 1 January 2014, when the sale contract was signed, instead of 1 April 2014 when the sale of the land was settled. 4. Div 108 ITAA97 contains the concept of a CGT asset...
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...ball yet, so there is potential energy. For our mouse trap car there is a specific location that contains potential energy. Potential energy is found when the lever in the mousetrap is in it’s positioned in its set position. If we didn’t have potential energy our mouse trap car wouldn’t move. Potential energy plays a big role in our mouse trap car. Kinetic energy is the energy of motion. When the energy is moving it has kinetic energy. Imagine a cup is falling from a table. While the cup is falling it contains kinetic energy. We have kinetic energy in our car while the car is moving. If our car didn’t have kinetic energy then it wouldn’t be able to move because kinetic energy is the energy of motion. Without motion it would just stay still. Kinetic energy is something that is needed for our mouse trap car. A lever is a simple machine that must have a fulcrum, load, and effort. The lever in our car is located in the mouse trap this lever is the lever arm. I know that it is a lever because it has a fulcrum,...
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...a US headquartered car membership based car sharing program that provides automobile reservation and use to its members. This concept started in Boston by two entrepreneurs named Robin Chase and Antje Danielson in the end of 1999. This year 2013, a deal was struck where Avis Budget Group acquired Zipcar for $500 million in cash, becoming a subsidiary of the group. The company provides a great service to its members by being able to let them reserve a car a year or even minutes in advance charging an hourly rate or for the day. There is not hassle with a Zipcar automobile, the hourly fee usually as low as $4.50 (depending on the city) covers all expenses from fuel, insurance and maintenance. This way of car sharing through memberships is very unique and it really goes into how through the use of modern technology (self-service) one can create a revolutionizing business or concept. Zipcar’s service solves an overwhelming need for young adults living in the city (generation Y). Zipcar targets those individuals who live in dense metropolitan areas. College students also benefit from this type of service, those that are in big state schools or universities. The issues of parking, insurance and monthly car payments are long gone with Zipcar’s business concept. They really meet exactly what the customer was looking for, which is to be able to use a car or automobile for a short time period and not worry about the big problems that arise when owning a car in any big, dense city...
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