CARS UNIT TEST STUDY SET

What is a Monroney Sticker? Where is it located, what information does it include, and is it required by law?

• A window sticker on new cars, displayed on the side window, listing MSRP, fuel economy, options, and destination charges; it is required by federal law

• A dealer’s handwritten price tag used on any vehicle, including used cars; it is not legally required

• A license tag on the rear bumper showing registration and VIN; it is required by state law

• A warranty card kept in the glovebox listing maintenance schedules

Explain what a Vehicle Identification Number (VIN) is.

• A unique 17-character serial number that identifies a vehicle’s manufacturer, model, and build details and is used to track its history

• A temporary paper plate number assigned by the DMV

• The code for the car’s radio security system

• A bank loan account number associated with the vehicle purchase

Describe what depreciation is, specifically with owning a car. How might this impact your decision to buy?

• Depreciation is the decrease in a car’s value over time, with the steepest loss when the vehicle is new; it can make buying used more cost‑effective

• Depreciation is the increase in a car’s value as mileage accumulates; it encourages buying new to capture appreciation

• Depreciation is the cost of routine maintenance; it suggests leasing is the only affordable option

• Depreciation is the interest charged on a loan; it means financing always costs more than paying cash

What is the term for an amount a dealership credits you for the used vehicle you provide as partial payment for another vehicle?

• Trade‑in value

• Down payment

• Rebate

• MSRP

BONUS: What is it called when you put money down for a seller to "hold" a vehicle for you, if you are not ready to make the purchase yet?

• Earnest‑money deposit to hold the vehicle temporarily

• Title fee

• Balloon payment

• Escrow closing costs

A car that has passed more rigorous inspection and carries a warranty is called a.....

• Used Car

• Certified Used Car

• Leased Car

• Car on Facebook Marketplace

Name three things that were discussed in class that affect car insurance rates.

• Driving record (tickets/accidents)

• Age and years of driving experience

• Vehicle type and value

• Where you live and park (ZIP code/garaging)

• Color of the car

What type of car insurance coverage would be used to fix YOUR car after an accident?

• Liability

• Collision

• Comprehensive

• Medical

What type of car insurance coverage would be used when your car is damaged by a tornado? Mark only one oval.

• Liability

• Collision

• Comprehensive

• Medical

What type of car insurance coverage would be used for medical bills for you and passengers? Mark only one oval.

• Liability

• Collision

• Comprehensive

• Medical