Unit 7/ Major Purchases Review

What is an advantage to buying a used car over a new car?

• Less miles

• More maintenance after purchase

• Less depreciation after purchase

• More expensive

When you lease a car, you are paying for...

• the depreciation of the vehicle + interest.

• only the interest on the loan.

• overall maintenance on the vehicle.

• principal on the loan + interest.

What is the purpose of a security deposit?

• It serves as a agreement to allow the tenant to use a property for an extended period of time

• It is filled out by potential tenant which helps landlord determine if they will accept or deny the candidate

• It is how landlords remove tenants for lease infractions

• It is how landlords ensure that the property is cared for and that rent is paid

What is NOT an advantage to renting?

• It is easier to move

• Living expenses are generally lower

• You are not responsible for maintenance

• You are building equity

T / F: Buying a home is always more beneficial than renting a living space.

• True

• False

T / F: When budgeting for a vehicle only consider the cost of the monthly loan or lease payment.

• True

• False

Which of the the following sites could you utilize to find a fair price for a vehicle?

• kbb.com

• carfax.com

• bbb.com

• craigslist.com

When renting, what is an additional cost that you must account for?

• Utilities

• Down Payment

• Closing Costs

• Mortgage

What should be the deciding factor when deciding to lease or purchase a vehicle?

• what your friends are doing

• how much money you have at that moment

• your personal financial situation and preferences

• the economy

A written agreement that allows tenant to use property for a specified time period and rent is a ____________.

• Rental Application

• Security Deposit

• Eviction

• Lease