WorksheetsCARS UNIT TEST STUDY SET
Total questions: 31
Worksheet time: 16mins
What is a Monroney Sticker? Where is it located, what information does it include, and is it required by law?
A window sticker on new cars, displayed on the side window, listing MSRP, fuel economy, options, and destination charges; it is required by federal law
A dealer’s handwritten price tag used on any vehicle, including used cars; it is not legally required
A license tag on the rear bumper showing registration and VIN; it is required by state law
A warranty card kept in the glovebox listing maintenance schedules
Explain what a Vehicle Identification Number (VIN) is.
A unique 17-character serial number that identifies a vehicle’s manufacturer, model, and build details and is used to track its history
A temporary paper plate number assigned by the DMV
The code for the car’s radio security system
A bank loan account number associated with the vehicle purchase
Describe what depreciation is, specifically with owning a car. How might this impact your decision to buy?
Depreciation is the decrease in a car’s value over time, with the steepest loss when the vehicle is new; it can make buying used more cost‑effective
Depreciation is the increase in a car’s value as mileage accumulates; it encourages buying new to capture appreciation
Depreciation is the cost of routine maintenance; it suggests leasing is the only affordable option
Depreciation is the interest charged on a loan; it means financing always costs more than paying cash
What is the term for an amount a dealership credits you for the used vehicle you provide as partial payment for another vehicle?
Trade‑in value
Down payment
Rebate
MSRP
BONUS: What is it called when you put money down for a seller to "hold" a vehicle for you, if you are not ready to make the purchase yet?
Earnest‑money deposit to hold the vehicle temporarily
Title fee
Balloon payment
Escrow closing costs
A car that has passed more rigorous inspection and carries a warranty is called a.....
Used Car
Certified Used Car
Leased Car
Car on Facebook Marketplace
Name three things that were discussed in class that affect car insurance rates.
Driving record (tickets/accidents)
Age and years of driving experience
Vehicle type and value
Where you live and park (ZIP code/garaging)
Color of the car
What type of car insurance coverage would be used to fix YOUR car after an accident?
Liability
Collision
Comprehensive
Medical
What type of car insurance coverage would be used when your car is damaged by a tornado? Mark only one oval.
Liability
Collision
Comprehensive
Medical
What type of car insurance coverage would be used for medical bills for you and passengers? Mark only one oval.
Liability
Collision
Comprehensive
Medical
What happens to your monthly payment if you put a larger amount of money down on your down payment? Mark only one oval.
It increases
It decreases
It stays the same
It doubles
A truck is 13,000 and there is a 20% down payment. How much is the down payment? Mark only one oval.
2,200
2,400
2,600
2,800
A sedan is 23,000 and there is a 20% down payment. How much is the down payment? Mark only one oval.
4,600
4,800
5,000
5,200
The price of a vehicle is 18,000 and the down payment is 10% of the purchase price. How much will be financed? Mark only one oval.
16,000
16,200
16,400
16,800
The price of a vehicle is 20,000 and the down payment is 5,000 . How much will be financed? Mark only one oval.
11,000
13,000
15,000
17,000
What are three factors you need to consider when determining what type of vehicle you would like to purchase? Mark all that apply.
Total cost and budget
Fuel efficiency and expected maintenance costs
Passenger and cargo space needs
Exterior paint color preference
Brand logo style
What are two tips that were discussed in class about buying or test driving a car? Mark all that apply.
Review the vehicle history report before buying
Get preapproved for financing to know your budget
Schedule a test drive that includes different road types
Sign paperwork quickly without reading the details
Skip a mechanic inspection because it is unnecessary
The price that the manufacturer recommends the dealer sells the car for is known as ___. Mark only one oval.
Invoice Price
Financing
MSRP
Incentives
What are two examples of Optional Equipment? Select two. Mark all that apply.
Sunroof
Leather seats
Loan APR
Vehicle registration
Which is NOT a good source for researching a car? Mark only one oval.
Kelley Blue Book
Edmunds
A car dealership’s official website
A random social media post
What is it called when you borrow money through the dealer or another source to pay for your car? Mark only one oval.
Invoice Price
Financing
Buying
Incentives
Why is it important to read the entire car contract before signing? Select all that apply (5). Check all that apply.
To fully understand the total amount you will be paying for the vehicle.
To determine the cost of your future oil changes and routine maintenance.
To check the interest rate (APR) and the length of the loan term (e.g., 60 months, 72 months).
To ensure there are no hidden fees or charges you were not expecting.
To confirm the details of any warranties or conditions are accurate.
Which statements correctly describe differences between buying and leasing a vehicle? Select all that apply. (5 points)
Buying builds equity and you own the car at the end of payments; leasing does not build equity and typically requires returning the car.
Buying typically has no mileage limits; leasing commonly includes mileage restrictions with fees for excess miles.
Buying always has lower monthly payments than leasing for the same vehicle.
Buying allows you to customize the vehicle freely; leasing often restricts modifications and charges for excess wear.
Buying requires no down payment while leasing always requires a large down payment.
What is the difference between a verbal and written car contract? (2 points)
A verbal contract is generally harder to prove and may be unenforceable under laws requiring certain agreements to be in writing, while a written contract provides documented terms and clearer enforceability.
A verbal contract always has lower interest rates than a written contract.
A verbal contract is valid only for used vehicles, while a written contract is valid only for new vehicles.
There is no legal difference between verbal and written contracts; both are equally documented.
A stone hits your windshield. Which type of coverage would likely cover this expense?
Collision
Liability
Comprehensive
None
This is the minimum required by law, only repairs the vehicle you hit, not your own
Liability
Collision
Comprehensive
Deductible
Your sweet Camaro had its windows busted by a hoodlum. It is unfortunate. Luckily you bought _________ coverage auto insurance.
Collision
Comprehensive
No fault
Liability
This type of car is the most expensive and depreciates in value once driven off of the lot
New car
Leased car
Used car
none of the above
Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
Her principal is the cost of the car, minus any down payment she makes
Her interest rate is the total cost she'll pay after making all of her principal and interest payments
Choosing a shorter term means it will take her longer to repay the loan
It's likely that her monthly payment will be between 4-5% of the cost of the car
A decrease in the value of an asset
Depreciation
Liabilities
Appreciation
Scarcity
