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- 1. Multiple Choice
What are good reasons to purchase a used car over a new car? (hint: choose 2 correct answers)
New cars depreciate faster than used cars
Insurance is generally cheaper on a used car
There are typically better financing options on a new car
You can get more car for your money when buying used
- 2. Multiple Choice
A disadvantage of buying a new car is it loses value faster than a used car. This is called
Capital gain
Inflation
Depreciation
Amortization
- 3. Multiple Choice
Which is NOT an expense of owning a car?
Repairs & maintenance
Gasoline
License & registration fees
Utilities
- 4. Multiple Choice
Paying full-price for a car in cash has many benefits. This is a better option for someone who...(hint: choose 3 correct answers)
Has the money saved up and can afford to pay in full
Does not have a steady source of income
Wants to get a great price from a private party
Wants to build their credit score
- 5. Multiple Choice
Financing a vehicle has advantages & disadvantages. Which is a disadvantage?
You need a small amount of money upfront compared to buying the car
You pay interest and fees on borrowed money
Your credit score is not taken into consideration
You have more flexibility to pay the car off over time
- 6. Multiple Choice
A certified used car is one that...(hint: choose 2 correct answers)
Has been inspected by the manufacturer
Can be bought at a lower price than a comparable model
Has a price that cannot be negotiated
Often includes an extended warranty
- 7. Multiple Choice
What is the purpose of a Carfax?
Shows the true market value of the vehicle being purchased
Calculates costs of the vehicle's maintenance & repairs
Offers financing options to the consumer
Supplies a vehicle history report to individuals
- 8. Multiple Choice
What information is listed in a vehicle's Carfax report? (hint: choose 3 correct answers)
Ownership history
Title history
Repair and maintenance history
Current loan balance
- 9. Multiple Choice
All of the following are advantages of leasing a vehicle EXCEPT
Your monthly payment is typically cheaper
Your auto insurance is typically cheaper
You get a new vehicle more frequently
Standard maintenance is typically included
- 10. Multiple Choice
Financing an auto loan over a longer period of time...(hint: choose 2 correct answers)
Increases your monthly payment
Decreases your monthly payment
Increases the amount you pay in interest
Decreases the amount you pay in interest
- 11. Multiple Choice
In some cases, the used car you are buying may have a lien on it. A lien means
The bank or lender is in possession of the title
The car has been paid for in cash
The car was bought in a different state than it's registered
The car has alignment & maintenance issues
- 12. Multiple Choice
It is important to have a used car inspected. How much does a professional inspection cost?
Approximately $300
Approximately $200
Approximately $100
Approximately $25
- 13. Multiple Choice
What is a mobile inspection?
Download an app to input photos of the vehicle inspection
An agency who connects you with a local mechanic
An inspector comes to your home & does an on-site inspection
Another term for a test drive
- 14. Multiple Choice
When trying to haggle the price of a used car, who should name the first price?
The salesman
You
- 15. Multiple Choice
It is important to comparison shop when purchasing a car. What does comparison shop mean?
Always buy from a local dealership
Take several photos to use for comparison
Compare the true market value of every vehicle
Compare the price & quality from different vendors
- 16. Multiple Choice
What document is often called a "pink slip"?
Proof of insurance
The title
A cashier's check
Car sales receipt
- 17. Multiple Choice
This type of law provides remedy for purchases of cars that fail to meet standards of quality.
Kelley Blue Book
Lemon Law
Edmunds Law
DOT Law
- 18. Multiple Choice
True or False: Buying a new car is always better than buying a used car.
True
False
- 19. Multiple Choice
Statistically, the average vehicle will have _________ owners in a lifetime.
10
6
3
1
- 20. Multiple Choice
One of the first steps in shopping for a vehicle is to create a(n)
Budget
List of wants
Insurance claim
Email account
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