Worksheets3.3 - Auto Loans
Total questions: 15
Worksheet time: 8mins
Which of the following is likely to INCREASE the monthly payment on your auto loan?
Increasing the size of your down payment
Decreasing the number of months in your term
Qualifying for a lower APR
Applying the trade-in value of your old car toward your new car purchase
Which statement about car leases is TRUE?
Leases typically have lower monthly payments than you'd pay to purchase the same car using a loan
Leases typically have higher monthly payments than you'd pay to purchase the same car using a loan
Leases are always the better option when getting a car, especially if you have a downpayment
Leases are never the better option when getting a car, especially if you have a downpayment
Laura has a substantially higher credit score than her sister, Caroline. They are both shopping for new cars and plan to pay for them over 4 years. Which statement is likely TRUE?
Laura’s APR and monthly payments will both be lower
Laura’s APR and monthly payments will both be higher
Laura’s APR will be lower but her monthly payment will be higher
Laura’s APR will be higher but her monthly payment will be lower
How does increasing the size of your down payment impact your auto loan?
It decreases the size of your principal and decreases the total cost of the loan
It decreases the size of your principal and increases the total cost of the loan
It increases the size of your principal and increases the total cost of the loan
It increases the size of your principal and decreases the total cost of the loan
Which of these represents the WORST negotiating tactic you can use when purchasing a vehicle?
Let the dealer know you are shopping around at multiple dealerships
Tell the salesperson the maximum amount you can afford per month
Be willing to leave if they’re not making you a good deal
Force the dealership to offer a price first, and you respond to their offer
Two types of financing our...
Direct Lending
Dearlership Finacing
Bank Negotiation
Cash Transaction
When choosing a lease, monthly payments are usually higher then finacing.
TRUE
FALSE
If you can not make you car payments, you should do ALL except..
Contact the Lender
Request a Derferral
Refinance your loan
Make a partial payment
Leasing a vehicle is a good choice because...
you are not responosible for damages
you can get a new car every 2 -3 years
there are no mileage restrictions
you get to keep the vehicle
What is the benefit of financing a vehicle?
You get a brand new vehicle every few years.
Payments are lower in the short term.
Once the loan is paid back, you own the vehicle.
Since milage is restricted, the car will last loinger
What is the main financial responsibility of owning a car?
Paying for gas
Paying for insurance
Making monthly payments to the lender
Paying for maintenance costs
What can happen if you stop making payments on your car loan?
You will be fined by the lender
You will legally own the car
The car can be repossessed
The lender will forgive the debt
What should you do if you are struggling to make your car payments?
Keep making your monthly payments
Contact your lender and explain your financial situation
Pay a fee to a company that promises to lower your payments
Sell your car to pay off the loan
If you could afford it, you can buy a car right off the lot and choose not to finance the car.
TRUE
FALSE
If you have to drive long distances to work everyday, which is the best option?
Auto Loan
Lease
