Buying or leasing a car / vehicle

A term that describes an alternative to car buying where monthly payments are paid for a specific period of time, after which the vehicle is returned to the dealership or bought, is:

• car financing
• car ownership
• car maintenance
• car leasing

What are good reasons to purchase a used car over a new car? (hint: choose 2 correct answers)

• 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

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...(hint: choose 2 correct answers)

• Increases your monthly payment

• Decreases your monthly payment

• Increases the amount you pay in interest

• Decreases the amount you pay in interest

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

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

Which example shows an advantages of owning a car over leasing one?

• Smaller monthly payments and good warranty to cover repairs.

• Expiring warranty means that you will get to handle repair payments.

• No restrictions on the number of miles to drive and the ability to customize, or make changes to the

  car.

• You will drive a fairly new car for a limited period of time.

A car is a(n) ________________________ asset.

• appreciating

• depreciating