Vehicle Financing Quiz

What is the role of the lien holder in vehicle financing?

• They provide the loan

• They negotiate the interest rate

• They hold the title until the loan is paid

• They own the car

What is the annual percentage interest rate (APR) in vehicle financing?

• The amount of down payment

• The credit processing fee

• The cost of the car

• The interest rate on the borrowed money

How can you get a lower APR in vehicle financing?

• By having a longer loan period

• By having a lower credit score

• By not comparing interest rates

• By borrowing for a shorter period of time

What is the second step in vehicle financing?

• Get pre-approved by the lender

• Know your numbers

• Understand the basics of financing

• Shop around for financing

What should you do before visiting the dealership for vehicle financing?

• Understand the basics of financing

• Shop around for financing

• Know your numbers

• Get pre-approved by the lender

What should you do to help negotiate a lower interest rate at the dealership?

• Clean up errors on your credit report

• Compare auto loan interest rates

• Have a good credit score

• Get pre-approved by the lender

What should you do to avoid any prepayment penalties in vehicle financing?

• Shop around for financing

• Read all the fine print carefully

• Get pre-approved by the lender

• Know your numbers

Who can help you learn more about auto loan financing?

• The lien holder

• A personal financial manager or counselor

• Your friends and family

• The dealership staff