Buying A Car

The sticker price of a new car is

• set by the dealer.

• only a suggested price.

• the minimum price set by the manufacturer.

• not subject to negotiation.

The cost of owning a car includes

• insurance

• repairs

• gas

• all of these

Which of the following is NOT a type of coverage in an automobile policy?

• liability
• extended warranty
• comprehensive
• collision

The _______________ is the cash you give to the dealer to lower the principal amount of the car.

• warranty expense
• interest amount
• down payment
• trade-in

If you are buying a car that costs $25,000 and your bank requires a down payment equal to 5% of the car cost, how much do you have to put down?

• $25,250
• $26,250
• $500
• $1,250

Joe's car cost him $250 per month.  How much will he have paid after 6 months?

• $1,500
• $250
• $240
• $41

A car cost $8,000 and the tax for the car is 7%. How much does the tax cost by itself?

• $8,000
• $7
• $56,000
• $560

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

• financing
• proof of insurance
• cash payment

Before purchasing a car, you should

• be aware of the true cost of car ownership.

• determine how much you can afford to spend.

• research the different cars.

• All of the above.

You are looking at a car that costs $28,000.  You want to add a CD player for $500, heated seats for $400 and a sunroof for $1,500.  What is the final cost for the car?

• $28,000
• $30,400
• $2,400
• $25,600