Understanding Car Buying

What is the first step Mya takes in the car buying process?

• Comparing car models online

• Checking her budget

• Calling insurance companies

• Visiting a dealership

What should the down payment on a car be based on according to some sources?

• At least 5% of the total price of the car

• At least 10% of the total price of the car

• The monthly income of the buyer

• The credit score of the buyer

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What does Frankie do to negotiate his loan rate?

• He improves his credit score

• He pays a larger down payment

• He gets pre-qualified for an auto loan

• He offers to buy a more expensive car

What is the benefit of paying the full price of the car upfront?

• It includes all future maintenance costs

• It eliminates the need for insurance

• It reduces the total cost by avoiding interest

• It automatically extends the warranty

What is an important factor to consider when shopping for loans?

• The color of the car

• The dealership's location

• Negotiating the terms of the loan

• The make of the car

Why is it important to have the car inspected before purchase?

• To ensure it matches the color you want

• To verify safety and emissions standards

• To negotiate a lower down payment

• To extend the warranty period

What should you do if a car doesn't pass inspection?

• Buy it at a discounted price

• Consider it for parts only

• Avoid purchasing it

• Pay for the repairs upfront

What is the purpose of getting pre-approved for a loan?

• To increase your credit score

• To have more negotiating power

• To finalize the purchase of the car

• To lock in the interest rate

What is a Certified Pre-Owned (CPO) car?

• A car that requires no inspection

• A car sold with no warranty

• A used car with a manufacturer's warranty

• A new car with no previous owners

Why might someone choose a 'buy here, pay here' dealership?

• For the extensive car warranties

• For the free maintenance services

• For the lower interest rates

• Because they do not require credit checks