Intro to Buying a Car

Which of the following are things to look for when shopping for a new or used car?

• the mileage
• damage to the exeterior of the car
• the price of the car
• all of these

What is depreciation?

• Cars lose value once you drive them.
• Cars lose space once you drive them.
• Cars gain value once you drive them.
• Cars lose mileage once you drive them.

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

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

insurance that pays for damage you cause to another person's vehicle

• collision
• liability

a piece of paper that proves who owns the car

• tag
• title
• tax

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

• financing
• proof of insurance
• cash payment

A disadvantage of buying a new car is it loses value faster than a used car. This is called

• Capital gain

• Inflation

• Depreciation

• Amortization

What information is listed in a vehicle's Carfax report?

• Ownership history

• Title history

• Repair and maintenance history

• Current loan balance

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