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WorksheetsCM Un4Wk2 - Buying a Car
Total questions: 19
Worksheet time: 39mins
What is the interest rate on a loan called?
APR-Accrued Percent Range
APR-Annual Percentage Rate
APR-Annual Primary Rate
APR-Annuity Preliminary Record
Which is the term for the reduction of value in the car over time usually based on the wear and tear caused by driving the car
Principal
True Market Value
Warranty
Depreciation
none of these
The money you pay upfront when getting a car loan is called the...
principal
down payment
interest
APR
This is the company that makes the cars we drive (Ford, Toyota, etc.)
msrp
model
Amazon
manufacturer
This is the assurance that your car will be protected from any major issues in case something happens before the number of years you own the car or the number of miles you drive it.
msrp
warranty
depreciation
true market value
This is the price of the car that includes the fees and other charges that are added to the price of a car but is often not included in the advertised price.
msrp
sticker price
true market value
principal
When borrowing money from a bank, this is the extra amount you need to pay in addition to the amount you borrowed
APR
principal
msrp
down payment
interest
This is the amount that a car manufacturer advises dealers to charge for a vehicle. It's just the starting point in negotiations at a car dealership.
MSRP - Manufacturer's Suggested Retail Price
Loan
Principal
Down Payment
This is the measure of how far a car can travel using exactly one gallon of gas. This figure helps you to compare cars based on their efficiency
APR
MPG - miles per gallon
FDIC
none of these
True or False: You should figure out in advance if you can afford ANY car before purchasing one.
True
False
Maybe
Which type of vehicle is one of the most suitable vehicles for hauling, towing and off-roading?
wagon
van
pickup truck
sedan
none of these
Sylvia is a first-time car buyer without an established credit history, so she is going to be charged a high interest rate. What could she possibly do to get a lower interest rate?
agree to a lease term of more than five years
take a financial literacy class at a local college
Get a co-signer with good credit, such as a parent
open at least three other credit accounts at the same time
A disadvantage of buying a new car is:
The car is clean and attractive
It is covered with a 12-month warranty
It’s expensive to purchase
The car has the latest technology
What is meant by "Certified Pre-Owned"?
It's a scam tactic to make you think it's a new car
It means that it is certified that it has been driven by another driver
It means someone else owns it
It means that the car is used but may have a limited warranty due to low wear-and-tear condition
none of these
Have you learned something about car-buying that you didn't know before?
Yes.
No
A little, I suppose. I don't have a car.
Marisol wants a brand new Toyota Corolla. She is currently a full-time student at a local university and works part-time a Starbucks.
What advice would you give?
List TWO (2) advantages to purchasing a used car.
List TWO (2) advantages to purchasing a new car.
