Chapter 5 Test

What is the average monthly car payment in the U.S.?

• $529

• $629

• $729

• $829

How much value does a new car lose when it is first driven off the lot?

• 5%

• 10%

• 20%

• 30%

By the end of the first year, a new car typically loses how much of its original value?

• 10%

• 20-30%

• 40%

• 50%

What is a key benefit of buying a car rather than leasing?

• Lower monthly payments

• No ownership at the end

• No mileage restrictions

• Covered under warranty

Which of the following is NOT a pro of leasing a car?

• Lower monthly payments

• Newer model vehicles

• Customization freedom

• Warranty coverage

What percentage of your annual income should your vehicle purchase ideally not exceed?

• 25%

• 50%

• 75%

• 100%

Which of the following is NOT included in car expenses?

• Gas

• Registration costs

• Closing costs

• Maintenance

What is a con of buying a car?

• Lower monthly payments

• Depreciation

• No ownership

• Warranty coverage

Which of the following is a con of leasing a car?

• No ownership at the end of the lease

• Lower monthly payments

• Newer models every few years

• Warranty coverage

Which housing type is a detached home designed for one family, often with a yard and garage?

• Townhouse

• Condominium

• Single-family home

• Multi-family home