Car Buying

Front

Longer finance periods are ideal for the consumer because financing for longer periods of time saves money in the end.

Back

False

Front

Ideally, consumers should spend no more than 10% of their monthly income on their monthly car payment.

Back

True

Front

Consumers with low credit scores are typically not going to find financing for a new or used car purchase.

Back

False

Front

By adding a cosigner, many consumers might be able to qualify for a lower interest rate on their new or used car purchase.

Back

True

Front

Every single hard inquiry with a credit reporting agency drops one's score; therefore, you should only pursue one finance option.

Back

False

Front

Through it may offer peace of mind, getting "pre-approved" for loans prior to shopping has no real economic value. True or False?

Back

False

Front

Dealer financing is risky and provides no real economic advantages over borrowing from a traditional financial institution. True or False?

Back

False

Front

If purchasing a new car is not economically feasible, one can lease a car and typically enjoy lower monthly payments.

Back

True

Front

Leasing a car is quite similar to purchasing a car since there are typically no restrictions or limitations in the lease agreement.

Back

False

Front

Once you have selected your financing option and signed the paperwork, the car belongs to you completely. True or False?

Back

False