Vehicle Financing Quiz

What is the purpose of the lien holder keeping the vehicle's title until the loan is paid in full?

• To ensure that the bank owns the car

• To protect the lender and allows them to repossess the car if the borrower stops making payments

• To allow the borrower to sell the car

• To give the borrower a sense of ownership

What additional fees might lenders charge for vehicle financing?

• Maintenance fees

• Insurance fees

• Credit processing fees

• Registration fees

How can you get a lower APR for vehicle financing?

• Borrowing for a longer period of time

• Having a good credit score

• Buying a used car

• Applying for financing at the dealership

What is the benefit of getting pre-approved by a lender before going to the dealership?

• You can negotiate a lower interest rate

• You can get a discount on the car price

• You can skip the credit check

• You can get cash back options

What should you know before going to the dealership to finance a vehicle?

• How much car you can afford

• How much down payment you can afford

• How much you can afford to borrow

• All of the above

What should you be cautious of when reading the fine print of a vehicle financing agreement?

• Prepayment penalties

• Restrictions on moving the vehicle out of the country

• Additional fees

• All of the above

Where can you get help and guidance for auto loan financing?

• From the dealership

• From a personal financial manager or counselor

• From the lien holder

• From the credit bureau

What is the first step to vehicle financing?

• Shopping around for financing

• Understanding the basics of vehicle financing

• Getting pre-approved by a lender

• Knowing your numbers