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Adv. $ Mangt. Car Buying Study Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the items is NOT a cost of owning a car?

a)

insurance

b)

maintenance

c)

gas

d)

ride sharing

2.

When deciding if you should buy a car, research the following:

a)

payment, interest, reliability

b)

payment, max speed, MPG

c)

MPG, average lifespan, size of tires

3.

When you walk into a car dealership, what should you NOT mention?

a)

what color car you want

b)

amount you can pay in monthly payments

c)

how far you drive daily

d)

what kind of car you drive now

4.

Which of the following is KEY to NEGOTIATING for a car?

a)

Respect the car salespeople

b)

Making deals with multiple dealerships at the same time

c)

Only deal with the manager, not sales people

d)

Telling them what monthly payment you want

5.

How do you know what price to start negotiating from?

a)

10% off MSRP

b)

$1000 less than you can afford

c)

Subtract your trade in value first

d)

The amount you'd like to pay

6.

What is the MOST important car BUYING tip?

a)

Take emotions out of the deal

b)

Treat people with kindness

c)

Trust the salesperson

d)

Read contract before you sign it

7.

If the car price is $15,000, what price should you start negotiating with?

a)

$15,000

b)

$14,000

c)

$13,500

d)

$13,000

8.

Which is TRUE?

a)

Cars appreciate in value over time

b)

Cars depreciate in value over time

9.

You should always tell the car dealer your desired monthly payment.

a)

False

b)

True

10.

If you have a car to trade in, you should make that part of the new car negotiations

a)

True

b)

False

11.

What happens if you co-sign for your friend's car and he/she doesn't pay?

a)

You have to pay their car payment

b)

An extension will be added to their loan

c)

It's okay. Their next payment will double.

d)

They will get a fee.

12.

How do you calculate the "out-of-door" price for a car?

a)

Add all the incentives to the MSRP

b)

Take the MSRP, add your trade-in car value, plus any sales tax

c)

Start with the negotiated price, subtract incentives and trade in credits then add sales tax

d)

Start with your trade in credit, add incentives, the negotiated car price and subtract taxes

13.

Which auto insurance is required by state law?

a)

Liablilty

b)

Collistion

c)

Replacement

d)

Comprehensive

14.

How do you calculate the amount of taxes you'll pay on a car purchase?

a)

car price X interest rate

b)

car price X credit score

c)

car price - trade in value

d)

car price - credit score

15.

What does it mean to be "upside down" on your car payment?

a)

You flipped your car in an accident.

b)

You no longer have to pay your car payment.

c)

You own more on your car than it's worth.

d)

You have to pay the interest first then the principal.