Buying a Car _ Review

To properly determine how much you can

afford to spend on a car, you will need to

• a. ask a car dealership how much you can

  afford.

• b. lease a car first.

• c. understand the cost to operate a car.

• d. All of the above.

Car operating expenses that you should be

aware of are

• a. maintenance and repairs.

• b. gasoline and insurance.

• c. license, taxes, and registration fees.

• d. All of the above.

A disadvantage of buying a new car

• a. that you get a warranty.

• b. instant depreciation.

• c. low maintenance costs.

• d. All of the above.

A disadvantage of buying a used car is

• a. higher loan costs or interest.

• b. higher maintenance and repair costs.

• c. none or a limited warranty.

• d. All of the above.

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Before purchasing a car, you should

• a. be aware of the true cost of car

  ownership.

• b. determine how much you can afford to

  spend.

• c. research the different cars.

• d. All of the above.

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An advantage of buying a used car is a

• a. lower purchase price and less

  depreciation.

• b. higher maintenance and repair costs.

• c. higher purchase price and more

  depreciation.

• d. None of the above.

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When researching a car, you will want

to compare the

• a. different cars available and expert

  reviews.

• b. options offered and the quality of

  each car.

• c. prices.

• d. All of the above.

If you need to finance the purchase of a

car, you should

• a. get a car loan at the car dealer.

• b. get pre-approved for a car loan at a

  bank.

• c. borrow money from your parents.

• d. None of the above.

When negotiating for a new car, you

want to negotiate as close as you can to

the

• a. manufacturer's suggested

  retail price.

• b. lease price.

• c. dealer’s invoice price.

• d. All of the above.

At a car dealer, the business manager is

a trained salesperson, and they

• a. only help you complete the forms.

• b. make sure you don’t overpay.

• c. will aggressively try to sell you “extras.”

• d. None of the above.

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