Car Ownership

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

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

When trying to haggle the price of a used car, who should name the first price?

• The salesman

• You

Tags

CCSS.RI.8.5

CCSS.RI.9-10.5

CCSS.RI. 9-10.8

CCSS.RI.11-12.5

CCSS.RI.8.8

It is important to comparison shop when purchasing a car. What does comparison shop mean?

• Always buy from a local dealership

• Take several photos to use for comparison

• Compare the true market value of every vehicle

• Compare the price & quality from different vendors

Tags

CCSS.RI.8.5

CCSS.RI.9-10.5

CCSS.RI.8.3

CCSS.RI.9-10.3

CCSS.RI.7.5

This type of law provides remedy for purchases of cars that fail to meet standards of quality.

• Kelley Blue Book

• Lemon Law

• Edmunds Law

• DOT Law

True or False: Buying a new car is always better than buying a used car.

• True

• False

One of the first steps in shopping for a vehicle is to create a(n)

• Budget

• List of wants

• Insurance claim

• Email account

The term __________ refers to a decrease in the value of property as a result of use and age

• capitalized cost reduction

• decprecitation

• amortization

• residual value