Personal Finance-Vehicles (Part Two)

An advantage of a brand new vehicle is...

• Less expensive

• Pre-owned

• Less initial depreciation

• Warranty

Negotiating is...

• Assessing one's needs and wants and determining the costs and benefits of different vehicles

• Comparing services or products to determine the best buy or a quality product at a fair price

• Evaluating a decision and a purchase determining what went well and what did not

• The process of determining the actual terms of the purchase agreement between the buyer and seller

An advantage of leasing is...

• Additional costs may occur

• If you don't like the car, you can't return it before the lease term ends

• Monthly payments are typically lower

• No ownership interest in the vehicle

Which of the following variables is included in an auto loan?

• APR

• Down payment

• Time period

• All of the above

What is true for loan variables?

• The higher the APR, the less interest is paid

• The higher the APR, the lower the total loan amount

• The longer the time period of the loan, the less interest paid

• The longer the time period of the loan, the smaller the payments

Consumer rights must be defined according to what consumer protection law?

• Consumer Rights Act

• Honesty to Consumers Act

• Lending Protection Act

• Truth in Lending Act

Which of the following can help reduce the amount you need to borrow?

• Higher down payment

• Lower down payment

• Higher interest rate

• Longer loan period

Your transportation costs should be no more than ___ of your budget?

• 5-10%

• 10-15%

• 15-20%

• 20-25%

You make $3,000 a month. You are interested in a car that would have a $250 monthly payment. According to the 20-10 Rule, can you afford this car?

• Yes

• No

What should be your first step when buying a car?

• Comparison shop

• Consider your budget

• Prioritize your wants

• Research