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Worksheets

Buying a Car/Loans/Insurance

Total questions: 24

Worksheet time: 1hrs 26mins

Name
Class
Date
1.

Insurance that pays for damage you cause to another person's vehicle

a)
collision
b)
liability
2.

Coverage that pays for damages you cause even if it's to your own vehicle

a)
collision
b)
liability
3.

Insurance coverage that pays for losses that are out of your control (weather related, fire, hitting an animal, etc.)

a)
collision
b)
comprehensive
c)
liability
4.
if you have to get a loan to purchase a vehicle it's known as...
a)
financing
b)
proof of insurance
c)
cash payment
5.

This type of insurance protects you if you get into an accident and the person who caused it DOESN'T have insurance

a)
liability insurance
b)
uninsured/underinsured motorist protection
6.
APR means the same as...
a)
deductible
b)
interest
c)
financing
7.

APR is...

a)

Annual Percentage Rate

b)

Artificial Petroleum Reserve

c)

Annual Price Reduction

8.

Having a lower APR could mean that your...

a)

monthly car payment is lower

b)

interest paid is higher

c)

car loan will be over a longer period of time

9.

A reduction in the value of an asset over time is called

a)

appreciation

b)

depreciation

c)

inflation

10.

You're likely to save more money in the long run if you...

a)

Buy a used car

b)

Lease a car

c)

Buy a new car

11.

Which is a better financial choice for getting a car loan?

a)

5% down-payment and term of 6 years.

b)

20% down-payment for a term of 4 years

12.

Most people cannot afford to pay for a new car in one day. Instead, people pay the cost over time, but sellers require a certain amount of money the day you buy it. This is called what?

a)

downpayment

b)

VIN

c)

insurance

d)

lease

13.

This is the assurance that your car will be protected from any major issues with the car in case something happens before the number of years you own the car or the number of miles you drive it.

a)

msrp

b)

warranty

c)

depreciation

d)

true market value

14.

When borrowing money from a bank, this is the amount of your monthly car payment that goes towards paying off your loan after interest has been deducted

a)

APR

b)

principal

c)

msrp

d)

down payment

15.

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

a)

liability

b)

collision

c)

comprehensive

d)

personal Injury

16.

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

17.

Which is NOT a factor that affects the price of a car?

a)

condition of car

b)

age of car

c)

your driving history

d)

color of car

18.

What's the name of the law that protects a person that has bought a brand new car that has major manufacturer problems?

a)

Sour Grapes Law

b)

Bad Car Law

c)

Unlucky Law

d)

Lemon Law

19.

The _______ is displayed in printed form on the vehicle; it is the suggested retail price

a)

sales price

b)

sticker price

20.

What's the best way to finance your car?

a)

Paying with Cash

b)

Paying with a credit card

c)

Paying with a debit card

d)

Paying with a loan

21.

The power the engine makes is compared to the power of a horse. the more power, the faster your car can accelerate or the heavier the weight it can carry.

a)

horsepower

b)

trade-in

c)

lemon

d)

MSRP

22.

if you are willing to give your car to the dealer in exchange for a new car, you can often get a better price

a)

lease

b)

VIN

c)

warranty

d)

trade-in

23.

Every car and driver must have this to legally drive in Ohio. Driving without this or getting into an accident without this can be EXTREMELY costly.

a)

insurance

b)

MSRP

c)

lease

d)

downpayment

24.

If you own more money than you car is worth (because of a bad choice of interest rate or term), it is called...

a)

under warranty

b)

being uninformed

c)

over the top

d)

being upside down