Car Buying and Financial Literacy

The video discusses the financial habits of millionaires, particularly their approach to car ownership. It highlights that millionaires often drive older, paid-off cars and avoid car payments. The video advises buying quality used cars unless one's net worth exceeds a million dollars. It provides tips on negotiating car deals, emphasizing the importance of research and paying cash. Additionally, it covers the significance of shopping for car insurance to save money.

According to the research, what is the average age of a car driven by a millionaire?

• 2 years

• 8 years

• 4 years

• 6 years

How much can you potentially have in your Roth IRA by investing $504 monthly from age 30 to 70?

• Five million dollars

• Three million dollars

• Seven million dollars

• One million dollars

What percentage of a car's value is typically lost in the first four years?

• 30-40%

• 40-50%

• 50-60%

• 60-70%

What is the recommended net worth threshold before considering buying a new car?

• Three million dollars

• Two million dollars

• One million dollars

• Half a million dollars

What is a key factor in ensuring a car lasts up to 300,000 miles?

• Regular maintenance

• Parking in a garage

• Driving slowly

• Using premium fuel

What is the first step in negotiating the best deal on a car?

• Bringing cash

• Studying the car

• Test driving the car

• Visiting multiple dealerships

What should you do if the car price seems high during negotiation?

• Offer a lower price

• Walk away immediately

• Argue with the seller

• Stay quiet and let the seller talk

What is a benefit of paying cash when buying a car?

• Immediate ownership

• Lower interest rates

• Better warranty

• Higher resale value

Why is it important to shop around for car insurance?

• To find the best coverage

• All of the above

• To compare different policies

• To get the lowest premium

What percentage of drivers do not shop for insurance before buying it?

• 50%

• 33%

• 20%

• 10%