Buying a New vs. Used Car: Making an Informed Decision

Which of the following is a financial incentive often provided by manufacturers for new cars?

• Lower insurance costs

• Depreciation

• Low-interest financing

• Variety of options.

New cars typically come with manufacturer warranties that cover repairs for several years or miles. True or False?

• True

• False

Fill in the blank: New vehicles often feature the latest technology in terms of safety, fuel efficiency, and ________.

• Depreciation

• Insurance costs

• Entertainment systems

• Lower purchase price.

What is a reason to buy a used car?

• Latest technology

• Customization options

• Lower purchase price

• Financing incentives

Used cars generally have lower insurance premiums than new cars. True or False?

• True

• False

The used car market offers a wide range of options, including models that may no longer be in production. True or False?

• True

• False

What should you consider before making a car purchase?

• Only the purchase price

• Only the color

• Total cost of ownership

• Only the brand.

Fill in the blank: Consider your budget, the total cost of ownership, and how long you plan to keep the ________.

• Insurance

• Car

• Technology

• Depreciation

Which of the following is a benefit of buying a new car?

• Lower purchase price

• Depreciation

• Latest technology

• Variety of options.

What percentage of your monthly take-home pay should be budgeted for transportation expenses?

• 5-10%

• 15-20%

• 25-30%

• 30-35%