Truth About Car Loans Quiz

When you finance a new car, you will end up paying more than the sticker price.

• True

• False

Leasing a car is a method of financing where someone ____________.

• Never pays any interest or fees

• Is paying off two or more vehicles at one time

• Makes monthly payments on but does not own the vehicle.

Car lease agreements come with a stipulation that you must pay a penalty if you_________________.

• Don't wash the car before returning it.

• Drive the car out of state

• Go over the pre-established mileage cap.

The smartest way to buy a car is to _____________.

• Pay for it in cash

• Finance it but pay the debt as quickly as you can.

• Lease it

A car is a depreciating asset.

• True

• False

The _______________ is the total amount of the car loan, plus taxes and fees.

• Term

• Principal

• Interest