Auto Financing Quiz

What is an important factor to consider when looking for auto financing?

• The color of the car

• The size of the car

• The interest rate on the loan

• The number of doors on the car

Why is it beneficial to make a larger down payment on a car?

• It extends the loan term

• It reduces the monthly payments

• It increases the interest rate

• It has no impact on the loan

What percentage of your income should you ideally spend on car payments?

• More than 30%

• Between 10% and 20%

• Less than 10%

• Between 20% and 30%

What does a higher credit score result in?

• Lower interest rates

• Higher interest rates

• No impact on interest rates

• No eligibility for special rates

What is the benefit of getting pre-approved for an auto loan?

• It allows you to negotiate better rates

• It guarantees a lower interest rate

• It eliminates the need for a down payment

• It increases the loan amount

What is the term length of most auto loans?

• Less than 12 months

• Between 12 and 24 months

• Between 24 and 36 months

• Between 36 and 60 months

What should you do if the dealer asks you what monthly payment you want?

• Provide the down payment amount and ask for rates and terms

• Ask for a longer loan term

• Ask for a higher interest rate

• Provide the desired monthly payment

What is leasing a car?

• Buying the car outright

• Renting the car for usually a 3-year period

• Selling the car after a few months

• Sharing the car with someone else

What should you consider when deciding on a term length for your auto loan?

• The number of doors on the car

• The size of the car

• Your financial situation

• The color of the car

What can you do to save money when financing a new car?

• Compare rates and terms from different lenders

• Make a smaller down payment

• Choose a car with a higher interest rate

• Extend the loan term