Car Buying Basics

What is a common advantage of choosing a new car over a used car?

• Lower initial purchase price

• Lower insurance costs

• Latest technology and features

• Higher resale value

Which of the following is NOT a common car financing option?

• Leasing

• Personal loan

• Payday loan

• Hire purchase

What does APR stand for in car financing?

• Annual Percentage Rate

• Automatic Payment Requirement

• Annual Payment Rate

• Approved Purchase Rate

Which of the following factors does NOT directly impact your credit score?

• Your income

• Payment history

• Credit utilization ratio

• Length of credit history

What is the primary benefit of buying a used car?

• It comes with the latest technology.

• It has a higher resale value.

• Lower initial purchase price.

• It is always in perfect condition.

Which of the "4 C's of Credit" refers to your history of paying debts on time?

• Capacity

• Capital

• Collateral

• Character

When comparing new and used cars, which factor is typically more favorable for new cars?

• Depreciation rate

• Insurance costs

• Warranty and maintenance packages

• Mileage

What is a major factor to consider when choosing between leasing and buying a car?

• Color options available

• The number of previous owners

• Mileage limits

• The brand of the car