Quiz

1. To know what type of vehicle is best for you, it is important to consider your needs, wants, and:

Driving style
Local roads
Budget

2. Do you need to make a down payment when purchasing a car?:

Usually no, but the more you save for a down payment, the less you have to borrow
You can make a down payment of less than 20% if you purchase PMI
Yes

3. A benefit of leasing a vehicle is:

You may be able to get a lower monthly payment
It is easy to get out of a lease if the arrangement doesn't suit your needs
In most cases, you don't need a good credit history to lease

4. The advantages of buying a new vehicle rather than a used one include:

The manufacturer’s warranty covers many repair costs
The vehicle maintains all of its value
Insurance premiums tend to be very low

5. To obtain the best deal on vehicle financing, it is most important to:

Use dealer financing
Have a good credit score
Have a down payment of at least 20%

6. Zero-percent financing:

Works to your advantage because of the very low monthly payments
Is usually only an option for those with excellent credit
Saves you money on fees and insurance

7. When you go to the dealership to buy your car, it is a good idea to:

Bring your credit report with you
Try to negotiate with the salesperson
Go alone

8. In general, if you are selling your old car, you can get the highest price if you:

Trade it in to the dealer
Have a neutral third-party sell it for you
Sell it yourself

9. What law gives you the right to know the terms of a loan?:

Consumer Leasing Act
Truth in Lending Act
Lending Disclosure Act

10. Lemon laws:

Apply to cars that have been repaired for the same defect(s) multiple times
Protect you against unfair financing deals
Cannot override the warranty in your purchase contract