Buying/Leasing a Car

Taisha Jones is shopping for a luxury sports utility vehicle with a base price of $63,195. She wants to add the following options: a panoramic power sunroof for $1,500 and a set of manual folding second row bucket seats for $795. The destination charge is $1,295. What is the sticker price?

• $65,223

• $36,410

• $32,615

• $66,785

Karen Woodruff is shopping for a new passenger van that has a base price of $61,700, options totaling $1,600, and a destination charge of $1,250. The dealer pays 80% of the base price and 85% of the options price. She wants to know the dealer’s cost before she makes an offer on the vehicle. What is the dealer’s cost?

• $1,360

• $51,970

• $49,360

• $50,230

Taylor Finn leased a sports car. She pays $379.00 a month for 24 months. Her deposit was $4,500.00. She paid a $52.25 title fee and a $61.00 license fee. What is her total lease cost?

• $13,981.34

• $15,009.28

• $13,709.25

• $12,878.33

If fixed costs are $3,337 and variable costs are $3,529. What is the total cost per mile if the number of miles driven is 9,670.42?

• 0.88

• 1.04

• 0.71

• 2.4

Helen leased a 4-door sedan. She pays $202.00 per month for 5 years. Her deposit was $1,550. She paid a $76.35 title fee and a $39.50 license fee. What is her total lease cost?

• $12,568

• $4089.35

• $1,275.85

• $13,785.85

You don’t own the vehicle—you pay to use the vehicle during the term.

• This is true for an auto lease.

• This is true for an auto loan.

What is TRUE about mileage restrictions?

• 1. Mileage restrictions accompany leasing a vehicle.

• 1. Mileage restrictions accompany buying a vehicle.

The sticker price of a new car is

• the minimum price set by the manufacturer.

• a suggested price subject to change

• not subject to negotiation

If you are buying a car that costs $25,000 and your bank requires a down payment equal to 5% of the car cost, how much do you have to put down?

• 
  $25,250

• 
  $26,250

• 
  $500

• 
  $1250

Before purchasing a car, you should

• be aware of the true cost of car ownership.

• 
  

  determine how much you can afford to spend.

• 
  research the different cars.

• all of the above