WorksheetsBuying a Car
Total questions: 23
Worksheet time: 14mins
What is APR/interest rate?
The percentage you pay for borrowing someone else's money
Your ability to repay the loan
Your reputation/history of timely payment
Something you file to your insurance company to get insured
What is capacity?
The percentage you pay for borrowing someone else's money
Your ability to repay the loan
Your reputation/history of timely payment
Something you file to your insurance company to get insured
What is character?
The percentage you pay for borrowing someone else's money
Your ability to repay the loan
Your reputation/history of timely payment
Something you file to your insurance company to get insured
What is a claim?
The percentage you pay for borrowing someone else's money
Your ability to repay the loan
Your reputation/history of timely payment
Something you file to your insurance company to get insured
What is a cosigner?
Someone that shares responsibility for a loan
The amount of money paid up front to lower the principal amount
A number from 300-850 that rates a person’s trustworthiness in regards to borrowing and repaying money
Item of value that guarantees that the loan will be repaid
What is a down payment?
Someone that shares responsibility for a loan
The amount of money paid up front to lower the principal amount
A number from 300-850 that rates a person’s trustworthiness in regards to borrowing and repaying money
Creditors want to know they will be paid back and look at the 3 C’s of credit to decide whether to approve you or not
What is collateral?
Someone that shares responsibility for a loan
The amount of money paid up front to lower the principal amount
A number from 300-850 that rates a person’s trustworthiness in regards to borrowing and repaying money
Item of value that guarantees that the loan will be repaid
What is a credit score?
Someone that shares responsibility for a loan
The amount of money paid up front to lower the principal amount
A number from 300-850 that rates a person’s trustworthiness in regards to borrowing and repaying money
Creditors want to know they will be paid back and look at the 3 C’s of credit to decide whether to approve you or not
(a) want to know they will be paid back and look at the 3 C’s of credit to decide whether to approve you or not
What are premiums?
Amount paid to keep insurance policy active
The amount of money paid up front to lower the principal amount
The percentage you pay for borrowing someone else's money
The original amount of money borrowed
What is principal?
The original amount of money borrowed
Amount paid to keep insurance policy active
The chance that something unexpected will occur.
The amount of money paid up front to lower the principal amount
(a) is the chance that something unexpected will occur.
The purpose of insurance is to be (a)
What factors affect your credit score?
Credit history
Payments owed
Length of history
Age
Who uses your credit score?
(a)
Are these pros or cons of leasing?
-Lower monthly payments
-Better warranty protection
-New car every 2-3 years
Pros
Cons
Are these pros or cons of leasing?
-Must have stable income
-Strict mileage limits
-Likely to pay more than one time
Pros
Cons
Where can you obtain your free credit report?
This coverage protects you in the event of an accident with another car or a stationary object (tree, fence, lamppost)
Collision
Comprehensive
This coverage protects you in the event of damage not caused by an accident. Examples: Theft, fire, flood, hurricane
Collision
Comprehensive
Insurance that covers physical injuries caused by a vehicle accident for which you are responsible
Liability
Personal injury
Motor vehicle insurance that applies when you damage the property of others
Liability
Uninsured
Insurance that covers the expense of being in an accident when the other driver does not have insurance
Personal injury
Uninsured
