Car Budgeting Quiz

What percentage of take-home pay do experts typically recommend spending on a car?

• 15 percent

• 20 percent

• 25 percent

• 30 percent

What should be included when setting a budget for a vehicle?

• Only the cost of car payments

• Only the cost of fuel and insurance

• Car payments, maintenance, gas, and insurance

• Only the cost of maintenance and gas

What is a benefit of leasing a car compared to buying?

• You will own the car at the end of the lease term.

• You have no mileage limits or additional charges.

• Lower monthly payment and the ability to drive newer model cars

• You can sell the car if needed.

According to Edmunds, what is the recommended maximum percentage of your monthly take-home pay that should go towards a new car payment?

• 10 percent

• 15 percent

• 20 percent

• 25 percent

What is the recommended maximum percentage of your monthly take-home pay that should go towards a used car payment?

• 10%

• 20%

• 30%

• 50%

What is the DTI ratio that most car dealers like to see?

• No higher than 25 or 30 percent

• No higher than 35 or 40 percent

• No higher than 45 or 50 percent

• No higher than 55 or 60 percent

Which website is suggested for searching mileage estimates for insurance costs?

• fueleconomy.com

• fuelcosts.gov

• fuelefficiency.gov

• fuelratings.gov

What factors do insurance companies typically evaluate when developing a price quote for car insurance?

• Your driving record, how much you use your car, and your location

• Your age, gender, and credit score

• The type and amount of coverage you selected and the discounts you qualify for

• All of the above

What does OTD stand for in the context of vehicle loans?

• Over The Desk

• Out The Door

• Off The Driveway

• On The Deal

Which of the following is NOT included in the OTD price of a vehicle?

• Taxes

• Vehicle cost

• Dealer fees

• Fuel efficiency