Buying a Car

Front

What does MSRP stand for?

Back

Manufacturer's Suggested Retail Price, the price that car builders say the car should be sold at.

Front

If a car costs $22,000 and the down payment is 10%, how much is the down payment?

Back

$2,200

Front

What is the total amount to be financed if the car costs $22,000 and the down payment is $2,200?

Back

$19,800

Front

How do you calculate the total amount to be repaid for a car with monthly payments of $361.97 for 5 years?

Back

Total amount to be repaid = Monthly payment x Number of months = $361.97 x 60 = $21,718.20

Front

If a car costs $25,000 and the down payment is $3,750, what is the total amount to be financed?

Back

$21,250

Front

What is the formula to calculate the down payment amount?

Back

Down Payment = Car Price x Down Payment Percentage.

Front

What is the significance of the total cost of ownership (TCO) when buying a car?

Back

TCO includes all costs associated with owning a car, such as depreciation, insurance, maintenance, and fuel.

Front

What does MPG stand for in relation to cars?

Back

Miles Per Gallon, a measure of how far a car can travel on one gallon of fuel.

Front

How do you convert years into months when calculating car payments?

Back

Multiply the number of years by 12 (e.g., 5 years x 12 = 60 months).

Front

What is the impact of a larger down payment on the total amount financed?

Back

A larger down payment reduces the total amount financed, leading to lower monthly payments and less interest paid over time.