EXIT TICKET Choosing a Car

Mason is starting his car search. All of the following are questions he should ask himself EXCEPT... a. What are my needs? b. How much will it cost to maintain the car? c. What type of car do my friends drive? d. How long do I want to keep this car?

• What are my needs?

• How much will it cost to maintain the car?

• What type of car do my friends drive?

• How long do I want to keep this car?

Which of the following statements is TRUE about the different types of cars?

• You can pick any type of car because they all meet the same needs

• SUVs are great options for drivers who expect to have 1 passenger a few times a week

• If your budget is tight, it’s a good idea to shop for a luxury car

• With a hybrid car, you will likely fill your gas tank less frequently

If you choose to buy a car through a traditional private-party sales platform, it’s a good idea to remember that...

• These platforms typically have higher prices than you would find at a dealership

• You should ask a lot of questions to make sure the offer is legit and not a scam

• The sellers are not in a rush to sell their car, so you have to be patient

• All of the platforms offer extensive protection for buyers

All of the following are reasons that your car insurance might increase EXCEPT:

• Getting into a car accident

• Moving to a big city with a lot of traffic

• Buying a more expensive car that has a greater likelihood of being stolen

• Decreasing your yearly mileage

Which of the following is TRUE about cars and depreciation?

• Cars depreciate in value most strictly based on mileage

• Cars lose 10% of their value the moment you drive it off the lot

• Car depreciate most after 10 years of use

• Cars do not depreciate if they are maintained and kept in good condition

Which of the following costs will not change the more you drive your car?

• Amount of depreciation

• Insurance premium

• Fuel Costs

• State Registration Fees

What is one advantage of buying a used car over a new car?

• Used cars always come with warranties

• Used cars tend to have a better value because new cars depreciate faster

• Used cars offer peace of mind due to their guaranteed reliability

• Used cars always have the latest features and technology

Jack has a subprime credit score and is shopping around for an auto loan. Which of the following lenders is likely to give him a loan with the MOST favorable terms?

• Dealership

• Bank

• Credit Union

• Online Lender

Which of the following statements about certified pre-owned (CPO) cars is TRUE?

• Certified pre-owned cars are generally cheaper than pre-owned cars

• Certified pre-owned cars are usually less reliable than pre-owned cars

• Certified pre-owned cars tend to have higher mileages than pre-owned cars

• Certified pre-owned cars come with manufacturer warranties while pre-owned cars may not

One key difference between leasing and buying a car is..

• Cars that are bought do not depreciate in value but leased cars do

• At the end of a lease, you must return your car but when you buy, you get to keep the car and its value

• When you lease a car, you do not pay any interest but when you use a loan to buy a car, you will pay interest

• Buying a car has lower monthly payments because the dealership is taking less risk by selling you the car instead of leasing it