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Purchasing a car

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

The average car down payment is ___%

a)

10

b)

25

c)

18

d)

20

2.

The majority of auto loan terms are:

a)

49-60 months

b)

61-72 months

c)

24-48 months

d)

12-23 month

3.

What time frame does depreciation occur on a new car?

a)

when you drive it off the lot

b)

1 month

c)

1 year

d)

when you get in a wreck

4.

Which is typically better to get the lowest monthly payment?

a)

zero % financing

b)

48-60 month loan

c)

cash rebate

d)

24-47 month loan

5.

On average people tend to spend (a)   % of their gross income on a car.

6.

What factors are included in car insurance pricing?

a)

drivers age

b)

where you live

c)

automobile type

d)

year automobile made

7.

Should a person tell the dealer how much you can afford monthly?

a)

Yes, honesty is the best policy

b)

No way, too many disguises

8.

It is a good idea to check with your bank about APR

% rates ___________ shopping.

a)

before

b)

after

c)

during

d)

none of the above

9.

Invoice pricing is what the dealer paid for that car.

a)

True

b)

False

10.

The 180 turn applies to the:

a)

seller

b)

Buyer

c)

Bank

d)

Dealer

11.

Buying a used car can save you up to ________ on overall ownership and expenses.

a)

25%

b)

80%

c)

50%

d)

60%

12.

The Federal 3-Day Cooling Off Rule applies to new, not used vehicles

a)

True

b)

False

13.

Invoice price and base price are identical.

a)

True

b)

Fasle

14.

The average cost of a new car is _____________.

a)

$15K

b)

$25K

c)

$30K

d)

$10K