Transportation Choices
An example of a car ownership advantage is ____.
A
When financing a car, you must pay ___ on the amount borrowed.
A
depreciation
A decrease in the value of property as a result of wear and tear or age.
Truth in Lending Law
A law requiring creditors to provide borrowers with a complete written account of credit terms and costs.
compulsory auto insurance laws
A law that requires drivers to show proof of their ability to pay stated minimum amounts in damages after an accident.
financial responsibility
A law that requires drivers to show proof of their ability to pay stated minimum amounts in damages after an accident.
lease
A legal rental agreement between the car dealer and the lessee, where the lessee pays an initial cost, which usually includes the first monthly payment and a security deposit. Monthly payments are made for a set period of time, however, the lessee does not own the car at the end of the lease, though there may be an option to buy the car.
COLLATERAL
A pledge of some kind of property as security for a loan.
The rate of interest figured on a yearly basis.
APR
domestic
American-made car.
carpool
An economical choice for people who come from and go to the same places at the same times.
Auto dealers, banks, credit unions, and loan associations ___.
B
Insurance that protects insured persons when they are liable for the damage to another person's property is __________.
B
Mass transit is available in most cities ___.
B
Of the following types of auto insurance, which will cover damages to a vehicle that were not the result of a collision?
B
To obtain a ___, the borrower pledges the car as security or collateral.
B
Which of the following vehicles does not require insurance?
B
Auto insurance can be purchased to cover which of the following liabilities?
C
Bodily injury liability insurance coverage pays for ____.
C
On a used car, the Buyer's Guide sticker describes _______.
C
Require drivers to show proof of their ability to pay stated minimum amounts in damages after an accident.
C
Some of the expenses associated with the initial purchase or lease of a car include everything EXCEPT
C
The most desirable form of transportation is ___.
C
Which of the following is NOT a chief advantage of mass transit over other forms of transportation?
C
The price on which a lease is based.
CAPITALIZED COSTS
Allows you to rent a car while yours is being repaired.
D
Auto insurance covers ___ you may incur if you are involved in an accident.
D
Car loans can be obtained from a variety of sources, such as:
D
Deciding on the best means of transportation depends on ____.
D
Identify the expenses associated with owning or leasing a car.
D
Identify the forms of mass transit from the list below ___.
D
If you get in an accident with a hit-and run driver, ___ will cover any damage.
D
The Cycle World Magazine can assist you in selecting a ___.
D
The finance contract will state the ___.
D
When selecting a bicycle, it is important to consider ___.
D
When selecting a motorcycle, a reference that can help you in the decision making process includes _____.
D
As a car owner/lessee, it is not a requirement to have minimum coverage auto insurance.
F
Auto financing costs about the same regardless of who provides the financing.
F
Mass transit is the best mode of transportation, if you are a traveling salesperson.
F
Mass transit systems are always on time and dependable.
F
Owning a car is a relatively inexpensive way to get where you want to go.
F
Regardless of your health, anyone can ride a bike or motorcycle.
F
The cost of auto insurance depends only on the type of car you drive.
F
The purchase price is the only cost you really need to seriously consider when buying a car.
F
When purchasing a vehicle, there is only one loan source available to buyers.
F
imported
Foreign-made car.
How can you determine what kind of car you can afford?
In order to determine the kind of car you can afford, you have to take into account your income, your credit history, the kinds of cars you can find for sale, and the cost of the features you need on a car.
Motorcycle Safety Foundation
Offers training courses for both beginning and skilled riders.
gap insurance
Pays the difference between what you owe on the lease and what the car is worth.
Discuss the environmental advantages of two-wheeled transportation.
Some of the advantages include very little smog, less congestion of the roads, and requires much less parking space.
Discuss the advantages and disadvantages of riding a bicycle.
Some of the advantages of riding a bicycle are no gas costs, no insurance premiums, little or no repairs and great exercise. Some of the disadvantages include no room for passengers, not an appropriate form of transportation for every situation, and they are subject to weather conditions.
An advantage of buying a used car rather than a new car is the lower price.
T
Auto replacement insurance covers the full cost of auto repairs or the cost of a new vehicle.
T
Brake systems have the ablility to stop one wheel or both wheels simultaneously.
T
Car pooling can save energy, minimize parking problems, and reduce traffic congestion.
T
If you are uncertain about the what size bike you want, you may want to browse at a reputable bike shop.
T
It is a good idea to line up a reliable service center before you have car trouble.
T
It is important for the life of your car to keep it current on routine maintenance such as oil changes and tune ups.
T
Motorcycles can be used as a primary form of transportation.
T
One of the advantages of using mass transit is that you do not have to worry about finding a parking place.
T
Owning a car is the most desirable form of transportation because it is convenient and comfortable.
T
The higher your annual percentage rate, the higher interest rate you are paying for your loan.
T
To receive auto warranty benefits, you usually must maintain the car as specified in the owner's manual.
T
Two-wheeled transportation offers both pleasure and fitness advantages.
T
Two-wheeled transportation offers environmental advantages, for example, bicycles are pollution free.
T
When considering transportation choices, you should compare costs, safety, and personal preferences.
T
When selecting a motorcycle, you should consider how you plan to use it.
T
money factor
The interest you pay usually stated as a small decimal.
lease term
The length of a lease on a car.
capitalized cost reduction
The price for a car that may include a down payment, trade-in allowance on a car you are trading, or rebates.
capitalized cost
The price of a car on which the lease is based.
residual value
The worth of a car at the end of the lease.
Requires creditors to provide borrowers with a complete written account of credit terms and costs.
Truth in Lending Law
Describe what you have to gain when you operate and maintain your car properly.
When you maintain your car properly, you will likely benefit from better car performance, greater driving safety, greater car reliability, fewer breakdowns, fewer repairs, better fuel economy, less pollution, and greater trade-in value.
insurance
an arrangement by which an insurance company guarantees compensation for personal and financial loss when an individual is involved in an accident and/or damage occurs to property, such as a car or home
Something of value pledged as security for a loan.
collateral
Insurance coverage that pays for damage to your car caused by something other than another vehicle.
comprehensive physical damage
Biking for trips that are less than three miles can save a sizable amount of
fuel
premiums
money paid to insurance companies on a monthly basis in exchange for insurance coverage
The type and amount of auto insurance coverage a car owner buys is ____.
not A
Which of the following is not an advantage of carpooling?
not A
You can reduce the cost of auto financing by ____.
not A
If the borrower fails to repay the loan, the lender may ___.
not B
Many small rural communities ___.
not C
The length of the repayment period is a factor in determining ___.
not C/B
New cars typically carry ___ protection on some parts.
not D
Personal injury protection is a type of ___.
not D
The Kelley blue book can help provide
not D
When you lease a car
not D
The worth of the car at the end of a lease.
residual value
For riding around your neighborhood a ____ one-speed model would do.
sturdy
deductible
the amount of money an individual must pay out of pocket for insured expenses before the insurance company will begin paying those expenses
Insurance coverage that pays for injuries caused by a hit-and-run driver.
uninsured motorist