Vehicles and Loans Practice Quiz

The most reliable source for buying a used car is usually:

• a rental car company

• a police auction

• a car dealer

• private party sales

Most used cars sold by private parties have a one-year warranty.

• True

• False

A service contract is designed to avoid costly repairs as a motor vehicle gets older.

• True

• False

The Truth in Lending Act requires that a borrower be informed of the total finance charge.

• True

• False

_____ warranty refers to the fact that a product will do what it is designed to do.

• An extended

• An implied

• A dealer

• An unexpired manufacturer's

The Truth in Lending Act requires that borrowers be informed of the:

• amount financed

• cost of auto insurance

• features of an extended warranty

• reasons a person has been denied credit

Collision insurance covers damage caused to a motor vehicle by vandalism or floods.

• True

• False

Bodily-injury liability covers the damage to another person’s car for which you were at fault.

• True

• False

The auto insurance coverage for damage to your vehicle as a result of an accident is called:

• property damage

• comprehensive

• liability

• collision

Doctor costs for injuries to others resulting from an accident are covered by ______ liability.

• medical

• collision

• bodily injury

• comprehensive