Automobile Ownership Chapter 4 Exam

Which is the most accurate comparison to the process of financing a vehicle?

• Purchasing it with cash

• Renting it for a specific amount of time

• Taking out a loan for it

• Trading it in

Choose the option that best describes the benefits of leasing a vehicle?

• Customization

• Lower Monthly Payments

• The mileage doesn't matter

• All of the Above

Choose the option that best describes a "con" for financing a vehicle instead of leasing it.

• Higher monthly payments

• Lower monthly payment

Which is an accurate list of ownership costs when budgeting for a vehicle?

• Monthly insurance, license, registration, and taxes

• Monthly insurance, gas, and taxes

• Monthly maintenance, registration, and taxes

• Monthly maintenance, license, and taxes

Which answer choice defines down payment?

• A payment that has gone down lower than your other payments.

• A full payment all at once.

• A payment that you make at the end of your lease.

• An initial up-front partial payment for the purchase of expensive items/services such as a car or a house

The North Shore News charges $19.50 for a two-line automobile ad. Each additional line costs $9. How much does a 6-line ad cost?

• 47.5

• 55.5

• 45.5

• 57.5

The Antique Auto News charges $10 for a 10-word classified ad. Each additional word costs $0.40. For an extra $40, a seller can include a photo in the ad. How much would a 40-word ad with a photo cost?

• 62

• 52

• 54

• 64

Samantha purchased a used car for $4,200. Her state charges 7% tax for the car, $47 for registration, $50 for a new title certificate, and $35 for a state safety and emissions inspection. How much does Samantha need to pay for these extra charges, not including the price of the car?

• 526

• 426

• 300

• 400

Ralph placed a classified ad to sell his SUV for $18,500. After 2 weeks, he didn’t sell the SUV, and the newspaper suggested lowering the price 7%. What would the new price be if Ralph reduced it according to the suggestion?

• 17205

• 1295

• 17575

• 1275

1. Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?

• Her principal is the cost of the car, minus any down payment she makes
• Her interest rate is the total cost she’ll pay after making all of her principal and interest payments
• Choosing a shorter term means it will take her longer to repay the loan
• It’s likely that her monthly payment will be between 4-5% of the cost of the car