Car Payment Quiz

According to experts, what is the maximum percentage of take-home pay that should be spent on a car payment?

• 10 percent

• 15 percent

• 20 percent

• 25 percent

What should be considered in addition to loan or lease payments when setting a budget for a vehicle?

• Maintenance, gas, and insurance

• Color, brand, and design of the vehicle

• The number of seats and car doors

• The sound system and technology features

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

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

• You have no mileage limits or additional charges

• Lower monthly payment and no long-term commitment to the vehicle's depreciation

• You can sell the car if needed

What is a disadvantage of leasing a car?

• You have to pay for the car's maintenance

• You will be upside-down on a loan

• You need to put money down and will not own the car

• You have unlimited mileage

What does Edmunds recommend regarding the percentage of your monthly take-home pay that should go towards a new car payment?

• No more than 10 percent

• No more than 15 percent

• No more than 20 percent

• No more than 25 percent

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

• 20%

• 10%

• 15%

• 30%

What is the debt-to-income ratio (DTI) preferred by most car dealers for approving a loan?

• No higher than 35%

• No higher than 45 or 50 percent

• No higher than 25%

• No higher than 60%

Which website is recommended for checking fuel economy estimates for vehicles?

• fueleconomy.com

• fueleconomy.gov

• fuelratings.gov

• careconomy.org

What does the "OTD" price stand for when purchasing a vehicle?

• Over The Dashboard

• Only The Deposit

• Out The Door

• Off The Driveway

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

• Taxes

• Fees

• Dealer fees

• Fuel costs