Quiz 6: Buying A Car

Mason is starting his car search. All of the following are questions he should ask himself EXCEPT...

• 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

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

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

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

All of the following are benefits of leasing a car instead of buying EXCEPT:

• A lower monthly payment

• Having the latest technology and safety features

• Being able to drive unlimited miles without fees

• You can get a new car every few years

Tamara has found a great car on EBay Motors and is going to buy from a private seller. Which of the following is BAD advice for Tamara as she goes to make her purchase?

• Always bring cash to cover the full cost of the vehicle. Private sellers do not accept other forms of payment.

• Have a trusted mechanic inspect the vehicle before making the purchase

• It’s a good idea to meet in a public location and to bring a friend or let someone know where you’ll be going

• Be sure to take the car for a test drive to be sure it’s in good condition and the right fit for you

Why is it a good idea to bring your most recent pay stubs to the dealership when you buy a car?

• Pay stubs can be used instead of a driver's license to verify your identity

• The dealership will need to verify that you are employed and able to make payments

• A pay stub will list your insurance information, which is required when buying a car

• The dealership will call your employer to be sure that you are a responsible person