Auto Leasing and Insurance Quiz Review

One key difference between leasing and buying a car is...

• Cars that are bought do not depreciate in value but leased cars do

• At the end of a lease, you must return your car but when you buy, you get to keep the car and its value

• When you lease a car, you do not pay any interest but when you use a loan to buy a car, you will pay interest

• Buying a car has lower monthly payments because the dealership is taking less risk by selling you the car instead of leasing it

All of the following are benefits of leasing a car instead of buying EXCEPT:

• A lower monthly payment

• Having the latest technology and safety features

• Being able to drive unlimited miles without fees

• You can get a new car every few years

The delivered price of Leah St. Clair’s car is $22,450. She makes a $2,800 down payment and pays the balance in 36 monthly payments of $612. What total amount did Leah pay for the car?

• 22,032

• 24,832

• 22,450

• 25,250

The delivered price of Leah St. Clair’s car is $22,450. She makes a $2,800 down payment and pays the balance in 36 monthly payments of $612. How much was the finance charge?

• 2,382

• 2,800

• 4,328

• 4,167

Suzanne Madigan leased a car for four years and drove the car 72,000 miles. Her monthly lease charge was $380.61. The leasing company charged $0.21 a mile for all miles driven over 60,000 miles. In addition, Suzanne had to pay a charge of $518.76 to repair a damaged door. Find the total monthly lease charges.

• 15,224.40

• 15,985.62

• 17,508.06

• 18,269.28

Suzanne Madigan leased a car for four years and drove the car 72,000 miles. Her monthly lease charge was $380.61. The leasing company charged $0.21 a mile for all miles driven over 60,000 miles. In addition, Suzanne had to pay a charge of $518.76 to repair a damaged door. What was the amount of the excess mileage charges?

Suzanne Madigan leased a car for four years and drove the car 72,000 miles. Her monthly lease charge was $380.61. The leasing company charged $0.21 a mile for all miles driven over 60,000 miles. In addition, Suzanne had to pay a charge of $518.76 to repair a damaged door. What was the total cost of leasing the car?

Use the table above to find the cost of insurance. Please circle your answers. What is the total premium for the standard insurance coverage on a car driven for pleasure?

Note: The standard coverage is $20/40,000 bodily injury; $10,000 property damage; $100 deductible for collision; $100 deductible for comprehensive.

• 82

• 98

• 710

• 734

On a truck he drives to work, Ryan carries bodily injury insurance of $50/100,000 and $250 deductible on collision. Other coverages are standard. Find his annual premium.

Note: The standard coverage is $20/40,000 bodily injury; $10,000 property damage; $100 deductible for collision; $100 deductible for comprehensive.

• 642

• 554

Because of three speeding tickets, Marsha has to pay a premium of 2.2 times the rate for standard coverage. She uses her car to drive to work. What is her premium for one year?

Note: The standard coverage is $20/40,000 bodily injury; $10,000 property damage; $100 deductible for collision; $100 deductible for comprehensive.

• 790

• 1738

• 710

• 1562