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Car-Buying Basics (Videos 1-3)

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

How many steps are in the car-buying process as discussed in the first video segment "The Process"?

a)

Seven

b)

Six

c)

Five

d)

Four

2.

Which of the following is the first step in the car-buying process as discussed in the first video segment?

a)

Determine budget

b)

Research options

c)

Prioritize needs

d)

Locate preferred vehicle

3.

Which of the following is the last stop in the car-buying process as discussed in the first video segment?

a)

Determine budget

b)

Negotiate purchase

c)

Examine vehicle

d)

Locate preferred vehicle

4.

Which of the following websites is NOT a source recommended in the first video segment?

a)

www.autonation.com

b)

www.kbb.com

c)

www.edmunds.com

d)

www.nadaguides.com

5.

Which of the following websites is the National Automobile Dealers Association website?

a)

www.autonation.com

b)

www.kbb.com

c)

www.edmunds.com

d)

www.nadaguides.com

6.

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

a)

Wagon

b)

Van

c)

SUV

d)

Coupe

7.

Which type of vehicle is sometimes also referred to as a weekender?

a)

Wagon

b)

Motorcycle

c)

Pickup truck

d)

Coupe

8.

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

9.

Len Caron said if you decide to get a used car, you should make sure it is a dependable model by checking which of the following?

a)

CarMax

b)

Consumer Reports

c)

Auto Trader

d)

Kelly Blue Book

10.

According to the segment, your total automotive expenses should NOT exceed what percentage of your take-home pay?

a)

10 percent

b)

20 percent

c)

30 percent

d)

40 percent

11.

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

a)

Liability

b)

Collision

c)

Comprehension

d)

Personal Injury

12.

Sylvia is a first-time car buyer without an established credit history, so she is going to be charged a high interest rate. According to Raegan Sisemore, what could she 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-buyer (co-signer) with good credit, such as a parent

d)

Open at least three other credit accounts at the same time

13.

Raegan Sisemore said 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 downpayment

14.

Which of the following is NOT a possible consequence of buying a car which is beyond your means as discussed in the segment?

a)

Inability to pay bills

b)

Temporary incarceration

c)

Repossession of the vehicle

d)

Decline in credit scores