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- 1. 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
- 2. Multiple Choice
Which is NOT an expense of owning a car?
Repairs & maintenance
Gasoline
License & registration fees
Utilities
- 3. 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
- 4. 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
- 5. Multiple Choice
When trying to haggle the price of a used car, who should name the first price?
The salesman
You
- 6. 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
- 7. Multiple Choice
What document is often called a "pink slip"?
Proof of insurance
The title
A cashier's check
Car sales receipt
- 8. 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
- 9. Multiple Choice
True or False: Buying a new car is always better than buying a used car.
True
False
- 10. 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
- 11. Multiple Choice
The term __________ refers to a decrease in the value of property as a result of use and age
capitalized cost reduction
decprecitation
amortization
residual value
- 12. Multiple Choice
The _______ states that when a motor vehicle needs repairs three times or more for the same problem, the repairs provide proof of the ineffectiveness of the manufacturer's warranty.
Truth in Lending Act
Lemon Law
Magnuson-Moss Warranty Act
FTC Used-Car Rule
- 13. Multiple Choice
The most common form of auto financing is a(n) _______.
lease
rental agreement
installment loan
cash sale
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