6.4 Auto Loans

Front

What are the key factors to consider when purchasing a vehicle?

Back

Reliability, safety, and cost efficiency are all important factors in the purchase decision-making process.

Front

What purchase strategy generally results in the lowest cost when buying a vehicle?

Back

Using money from savings to fund the entire purchase.

Front

What is the best vehicle choice for a college student who needs to reduce transit time?

Back

An inexpensive compact car is the best choice for Maribelle, as it meets her needs for affordability and efficiency.

Front

When making an automobile purchase decision, what price and quality should you aim for?

Back

You should aim for the lowest price and the highest quality.

Front

How can a salesperson determine if a customer is lying about their car shopping history?

Back

A salesperson can check the customer's credit report, which may show that other dealers have accessed their credit score.

Front

What is the importance of reliability in vehicle selection?

Back

Reliability ensures that the vehicle will perform well over time, reducing maintenance costs and the likelihood of breakdowns.

Front

Why is safety a critical factor in vehicle purchase decisions?

Back

Safety features protect the driver and passengers, making it essential for reducing the risk of injury in accidents.

Front

What does cost efficiency mean in the context of vehicle purchases?

Back

Cost efficiency refers to the balance between the purchase price, operating costs, and the vehicle's overall value.

Front

What is a down payment, and why is it important when financing a vehicle?

Back

A down payment is an upfront payment made when purchasing a vehicle, which reduces the amount financed and can lower monthly payments.

Front

What are the benefits of using savings to purchase a vehicle outright?

Back

Using savings eliminates interest payments, reduces overall cost, and provides full ownership immediately.