Buying A Car

What are good reasons to purchase a used car over a new car?

• 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

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

Financing an auto loan over a longer period of time

• Increases your monthly payment

• Decreases your monthly payment

• Increases the amount you pay in interest

• Decreases the amount you pay in interest