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joes buying a car review

Total questions: 24

Worksheet time: 41mins

Name
Class
Date
1.

annual percentage rate (apr)

a)

the interest rate on a loan represented as a percentage

b)

the reduction in value of a car over time usually based on the wear and tear caused by driving the car

c)

the brand or company that made a car, such as Ford

2.

depreciation

a)

the measure of how far a car can travel using exactly one gallon of gas

b)

the specific vehicle name within a make, such as a Ford Mustang

c)

the reduction in value of a car over time usually based on the wear and tear caused by driving the car

d)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

3.

down payment

a)

the price of a car that includes feeds and other charges added to the price of the car (often not included in the advertised price)

b)

sum of money you pay to the bank upfront when getting a car loan

c)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

d)

additional coverage that you can buy to pay for repairs or replacements needed beyond the original warranty period

4.

make

a)

the specific vehicle name within a make, such as a Ford Mustang

b)

the reduction in value of a car over time usually based on the wear and tear caused by driving the car

c)

the measure of how far a car can travel using exactly one gallon of gas

d)

the brand or company that made a car, such as Ford

5.

model

a)

the brand or company that made a car, such as Ford

b)

the specific vehicle name within a make, such as a Ford Mustang

c)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

d)

the company that built the vehicle, such as General Motors

6.

manufacturer

a)

the company that built the vehicle, such as General Motors

b)

the specific vehicle name within a make, such as a Ford Mustang

c)

the measure of how far a car can travel using exactly one gallon of gas

7.

miles per gallon (MPG)

a)

the measure of how far a car can travel using exactly one gallon of gas

b)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

c)

principal

amount of your monthly payment that goes towards paying off your loan BEFORE interest

d)

the price of a car that includes feeds and other charges added to the price of the car (often not included in the advertised price)

8.

Manufacturer's Suggest Retail Price (MSRP)

a)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

b)

the assurance that your car will be protected from any major issues in case something happens before a certain number of years/miles you drive it (the manufacturer will cover the costs of repairs during this period)

c)

additional coverage that you can buy to pay for repairs or replacements needed beyond the original warranty period

9.

principal

a)

the company that built the vehicle, such as General Motors

b)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

c)

amount of your monthly payment that goes towards paying off your loan BEFORE interest

10.

True Market Value

a)

the assurance that your car will be protected from any major issues in case something happens before a certain number of years/miles you drive it (the manufacturer will cover the costs of repairs during this period)

b)

the amount that a car manufacturer advises the dealers to charge for the car (starting point for negotiations)

c)

additional coverage that you can buy to pay for repairs or replacements needed beyond the original warranty period

d)

the price of a car that includes feeds and other charges added to the price of the car (often not included in the advertised price)

11.

warranty

a)

the assurance that your car will be protected from any major issues in case something happens before a certain number of years/miles you drive it (the manufacturer will cover the costs of repairs during this period)

b)

amount of your monthly payment that goes towards paying off your loan BEFORE interest

c)

the company that built the vehicle, such as General Motors

d)

the brand or company that made a car, such as Ford

12.

extended warranty

a)

amount of your monthly payment that goes towards paying off your loan BEFORE interest

b)

additional coverage that you can buy to pay for repairs or replacements needed beyond the original warranty period

c)

the assurance that your car will be protected from any major issues in case something happens before a certain number of years/miles you drive it (the manufacturer will cover the costs of repairs during this period)

13.

common warranty plan

a)

3 year 36000

b)

5 year 36000

c)

4 year 36000

d)

10 year 36000

14.

true cost to own a car is calculated over--- years

a)

3 year

b)

4 year

c)

7 year

d)

5 year

15.

registration needs to be completed-----

a)

weekly

b)

yearly

c)

monthly

d)

daily

16.

The cost of a car is $25,000 and there is a 15% down payment. What is the down payment amount?

a)

$375,000

b)

$2,500

c)

$3,750

17.

The cost of a car is $25,000 and the down payment is $3,750. What is the total amount to be financed?

a)

$28,750

b)

$21,250

c)

$20,000

18.
insurance that pays for damage you cause to another person's vehicle
a)
collision
b)
liability
19.
a piece of paper that proves who owns the car
a)
tag
b)
title
c)
tax
20.

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

21.

manufacturer's suggested retail price. price that car builders say the car should be sold at.

a)

downpayment

b)

MSRP

c)

MPG

d)

total cost of ownership (TCO)

22.

When buying a used car, it is wise to take the car to a trusted mechanic for a check prior to purchase.

a)

True

b)

False

23.

Which is NOT an expense of owning a car?

a)

Repairs & maintenance

b)

Gasoline

c)

License & registration fees

d)

Utilities

24.

Financing a vehicle has advantages & disadvantages. Which is a disadvantage?

a)

You need a small amount of money upfront compared to buying the car

b)

You pay interest and fees on borrowed money

c)

Your credit score is not taken into consideration

d)

You have more flexibility to pay the car off over time