Auto Loans - Wiand

The amount of time over which an individual agrees to repay an auto loan. Typically ranges from 36 to 84 months.

• Loan

• Term length

• Down payment

• Annual percentage rate (APR)

The original amount of money that is borrowed. The amount decreases when you make a payment.

• Annual percentage rate (APR)

• Loan amount or principal

• Down payment

• Loan terms

The larger your down payment amount, the _______ your loan amount, and ______ your monthly car payments.

• Larger/larger

• Larger/smaller

• Smaller/larger

• Smaller/smaller

When borrowing money for an auto loan, it is better to have a (higher/lower) interest rate.

• Higher

• Lower

A shorter term length gives _____ monthly payments and _____ overall interest paid.

• Higher/more

• Higher/less

• Lower/less

• Lower/more

The amount of money a dealer is willing to pay for your old car

• Trade-in Value

• Book Value

• Switch Value

• Retire value

A longer term length means you pay less total interest.

• False

• True

The fee charged for borrowing money

• Auto loan

• Loan terms

• Down payment

• Annual percentage rate (APR)

When getting a car loan you will want to get the highest or the lowest interest rate?

• lowest
• highest

An APR of 5.4% in decimal form is....

• .54

• .054

• 5.4

• .0054