Buying a Vehicle Test

Front

Financing your car means:

Back

Paying off the car in monthly payments

Front

Many personal finance experts recommend keeping your car budget costs to no more than __% of your take-home pay after taxes. Your budget will include any car payment, auto insurance, gas, maintenance, and repairs.

Back

10%

Front

True or False: Far too many car buyers shop for vehicles beyond their means and prefer a low down payment. It can lead buyers to drastically misjudge their capabilities regarding monthly payments and then want to reduce the monthly payments by stretching out the lengths of the loans, all of which lead to trouble in the future.

Back

True

Front

Trading-in your car gets you more money than selling the car on your own.

Back

False

Front

MSRP (____ ___ ___ ____)

Back

manufacturer's suggested retail price

Front

Lower ____ ____ and little to no money down can make car leasing seem like a great deal. The truth is that leasing offers _______ , but only if you are willing to put up with restrictions.

Back

monthly payments convenience

Front

Leasing restrictions include mileage limits of typically _____ miles per year, or sometimes 10,000 miles per year, diligent _____ and care of the vehicle, and, in some cases, _____ for early termination.

Back

12,000 upkeep penalties

Front

Before considering the purchase of a new car, it is wise to establish the amount you are willing to spend or calculate the monthly ____ payment. Don’t forget that, after negotiating the car’s final price, you will need extra cash to cover the ___,___,and___.

Back

loan tax, title, registration

Front

Where can I get a loan for buying a car? Options: Bank/Credit Union, The car dealership, The car manufacturer, Your mom, University

Back

The car manufacturer

Front

The truth is, automobile insurance is a _____. Most states, except New Hampshire and Virginia, ____ all vehicle owners to carry car insurance and be able to show proof of it.

Back

necessity, require