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car buying experience

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

How many steps are in the car-buying process?

a)

7

b)

6

c)

5

d)

4

2.

Which of the following is the first step in the car-buying process

a)

determine budget

b)

research options

c)

prioritize needs

d)

located preferred vehicles

3.

Which of the following is the last step in the car-buying process?

a)

determine budget

b)

negotiate purchase

c)

examine vehicle

d)

locate preferred vehicle

4.

Which type of vehicle is a smaller version of a sedan?

a)

wagon

b)

van

c)

suv

d)

coupe

5.

Which type of vehicle is one of the most suitable vehicles for hauling, towing and off-roading?

a)

wagon

b)

van

c)

pickup truck

d)

sedan

6.

Your total automotive expenses should NOT exceed what percentage of your net pay?

a)

10%

b)

20%

c)

30%

d)

40%

7.

Which type of auto insurance is required by law in most states?

a)

liability

b)

collision

c)

comprehensive

d)

personal Injury

8.

Sylvia is a first-time car buyer without an established credit history, so she is going to be charged a high interest rate. What could she possibly do to get a lower interest rate?

a)

agree to a lease term of more than five years

b)

take a financial literacy class at a local college

c)

Get a co-signer with good credit, such as a parent

d)

open at least three other credit accounts at the same time

9.

When you lease a car, you are basically paying for which of the following?

a)

value plus interest

b)

value plus endorsement

c)

rent plus depreciation

d)

rent plus down payment

10.

What job might it be a good idea to consider leasing a vehicle instead of buying?

a)

Real Estate Agent

b)

Lawyer

c)

Consultant

d)

All of the Above

11.

Which of the following is NOT a possible consequence of buying a car which is beyond your means to repay?

a)

inability to pay bills

b)

temporary incarceration

c)

repossession of the vehicle

d)

decline in credit score

12.

Invoice price is sometimes also referred to as which of the following?

a)

true market value

b)

dealer cost

c)

sticker price

d)

out the door price

13.

Which of the following is least important when test-driving a vehicle for safety?

a)

driving over bumps, testing the suspension

b)

testing the brakes

c)

listening to the radio

d)

driving on the highway

14.

Extended warranties are also referred to as which of the following?

a)

service contracts

b)

mechanical add-ons

c)

manufactures' guarantees

d)

incentives

15.

How do you know when you have leverage in a car buying experience

a)

when you can walk away from the deal

b)

when that car is your only option

c)

when you kind of like the vehicle

d)

when really need a new vehicle