Car Buying

Longer finance periods are ideal for the consumer because financing for longer periods of time saves money in the end.

• True

• False

Ideally, consumers should spend no more than 10% of their monthly income on their monthly car payment.

• True

• False

Consumers with low credit scores are typically not going to find financing for a new or used car purchase.

• True

• False

By adding a cosigner, many consumers might be able to qualify for a lower interest rate on their new or used car purchase.

• True

• False

Every single hard inquiry with a credit reporting agency drops one's score; therefore, you should only pursue one finance option.

• True

• False

Through it may offer peace of mind, getting "pre-approved" for loans prior to shopping has no real economic value.

• True

• False

Dealer financing is risky and provides no real economic advantages over borrowing from a traditional financial institution.

• True

• False

If purchasing a new car is not economically feasible, one can lease a car and typically enjoy lower monthly payments.

• True

• False

Leasing a car is quite similar to purchasing a car since there are typically no restrictions or limitations in the lease agreement.

• True

• False

Once you have selected your financing option and signed the paperwork, the car belongs to you completely.

• True

• False