Buying a Car

The cost of a car is $22,000 and the down payment is $2,200. What is the total amount to be financed?

• $19,800

• $24,200

• $20,000

It is better to buy....

• a new car

• an old car

• a car that is no more that 3 years old, but already known

When you buy a car, don't trust ...

• the captain

• the manager

• the salesman

• the driver

an initial payment made when something is bought on credit.

• down payment

• processing fee

• lease payment

• drive off payment

A guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models and types.

• Dealer book

• Blue Book

• Price Book

• Black Book

manufacturer's suggested retail price

• ASAP

• MSRP

• NAACP

• PVC

high priced items that dealers try to sell to customers, which add little to no value to the automobile.

• premium add-ons

• luxury add-ons

• buyer add-ons

• dealer add-ons

What is the primary purpose of a car loan?

• To pay for the entire cost of the car

• To cover the down payment

• To finance the remaining cost after the down payment

• To pay for car insurance

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

• Higher resale value

• Lower initial cost

• Longer warranty period

• Better fuel efficiency

What is the term for the amount you pay upfront when purchasing a car?

• Interest rate

• Down payment

• Monthly installment

• Loan term