Purchasing a Used Car

What are good reasons to purchase a used car over a new car? (hint: choose 2 correct answers)

• New cars depreciate faster than used cars

• Insurance is generally cheaper on a used car

• There are typically better financing options on a new car

• You can get more car for your money when buying used

A disadvantage of buying a new car is it loses value faster than a used car. This is called

• Capital gain

• Inflation

• Depreciation

• Amortization

Which is NOT an expense of owning a car?

• Repairs & maintenance

• Gasoline

• License & registration fees

• Utilities

Paying full-price for a car in cash has many benefits. This is a better option for someone who...(hint: choose 3 correct answers)

• Has the money saved up and can afford to pay in full

• Does not have a steady source of income

• Wants to get a great price from a private party

• Wants to build their credit score

Financing a vehicle has advantages & disadvantages. Which is a disadvantage?

• You need a small amount of money upfront compared to buying the car

• You pay interest and fees on borrowed money

• Your credit score is not taken into consideration

• You have more flexibility to pay the car off over time

A certified used car is one that...(hint: choose 2 correct answers)

• Has been inspected by the manufacturer

• Can be bought at a lower price than a comparable model

• Has a price that cannot be negotiated

• Often includes an extended warranty

What is the purpose of a Carfax?

• Shows the true market value of the vehicle being purchased

• Calculates costs of the vehicle's maintenance & repairs

• Offers financing options to the consumer

• Supplies a vehicle history report to individuals

What information is listed in a vehicle's Carfax report? (hint: choose 3 correct answers)

• Ownership history

• Title history

• Repair and maintenance history

• Current loan balance

All of the following are advantages of leasing a vehicle EXCEPT

• Your monthly payment is typically cheaper

• Your auto insurance is typically cheaper

• You get a new vehicle more frequently

• Standard maintenance is typically included

Financing an auto loan over a longer period of time...(hint: choose 2 correct answers)

• Increases your monthly payment

• Decreases your monthly payment

• Increases the amount you pay in interest

• Decreases the amount you pay in interest