CM Un4Wk1 - Buying a Car

Lesson Objective:

​Review Car Buying Terms and Review How to Purchase

​Let's Review some terms...

​

Multiple Choice

What is the interest rate on a loan called?

• APR-Accrued Percent Range

• APR-Annual Percentage Rate

• APR-Annual Primary Rate

• APR-Annuity Preliminary Record

Multiple Choice

Which is the term for the reduction of value in the car over time usually based on the wear and tear caused by driving the car

• Principal

• True Market Value

• Warranty

• Depreciation

• none of these

Multiple Choice

The money you pay upfront when getting a car loan is called the...

• principal

• down payment

• interest

• APR

Multiple Choice

This is the company that makes the cars we drive (Ford, Toyota, etc.)

• msrp

• model

• Amazon

• manufacturer

Multiple Choice

This is the assurance that your car will be protected from any major issues in case something happens before the number of years you own the car or the number of miles you drive it.

• msrp

• warranty

• depreciation

• true market value

Multiple Choice

This is the price of the car that includes the fees and other charges that are added to the price of a car but is often not included in the advertised price.

• msrp

• sticker price

• true market value

• principal

Multiple Choice

When borrowing money from a bank, this is the extra amount you need to pay in addition to the amount you borrowed

• APR

• principal

• msrp

• down payment

• interest

Multiple Choice

This is the amount that a car manufacturer advises dealers to charge for a vehicle. It's just the starting point in negotiations at a car dealership.

• MSRP - Manufacturer's Suggested Retail Price

• Loan

• Principal

• Down Payment

Multiple Choice

This is the measure of how far a car can travel using exactly one gallon of gas. This figure helps you to compare cars based on their efficiency

• APR

• MPG - miles per gallon

• FDIC

• none of these

Open Ended

Marisol wants a brand new Toyota Corolla. She is currently a full-time student at a local university and works part-time a Starbucks.

What advice would you give?

Multiple Choice

True or False: You should figure out in advance if you can afford ANY car before purchasing one.

• True

• False

• Maybe

Multiple Choice

if you have to get a loan to purchase a vehicle it's known as...

• financing
• proof of insurance
• cash payment

Multiple Choice

Which type of vehicle is one of the most suitable vehicles for hauling, towing and off-roading?

• wagon

• van

• pickup truck

• sedan

Multiple Choice

Sylvia is a first-time car buyer without an established credit history, so she is going to be charged a high interest rate. What could she possibly do to get a lower interest rate?

• agree to a lease term of more than five years

• take a financial literacy class at a local college

• Get a co-signer with good credit, such as a parent

• open at least three other credit accounts at the same time

Multiple Choice

What is meant by "Certified Pre-Owned"?

• It's a scam tactic to make you think it's a new car

• It means that it is certified that it has been driven by another driver

• It means someone else owns it

• It means that the car is used but may have a limited warranty due to low wear-and-tear condition

• none of these

Poll

Have you learned something about car-buying that you didn't know before?

• Yes.

• No

• A little, I suppose. I don't have a car.