Unit 4 Test
What would a 10% down payment be on a $17,000 car? $1,700 $1,000 $700 $170
$1,700
What is a 10% down payment on a $12,000 car? $1120,200 $2,400 $120 $1,000
$120
What is the minimum down payment recommended to purchase a car? 0% 20% 15% 10%
10%
What is the MPG (miles per gallon) of your car if the gas tank takes 10 gallons of gas and you have driven 120 miles? 10 MPG 11 MPG 13 MPG 12 MPG
12 MPG
Is a car usually the 1st, 2nd, 3rd, or 4th most expensive purchase in life? 2nd 4th 3rd 1st
2nd
The practice of advertising a car at an unrealistically low price, then switching a customer to a different vehicle at a higher price. Factory-to-Dealer Incentives Bait and Switch Factory-to-Dealer Holdbacks Cost of the loan
Bait and Switch
The cost of the car without options but includes standard equipment and factory warranty. APR MSRP Base Price dealer sticker price
Base Price
When is the best time to look for a mechanic? When you're getting your oil changed When your car breaks down When you're selling your car Before you need one
Before you need one
A car that has passed through the dealer's mechanical and physical inspection. APR Extended Warranty Lemon Certified Used Car
Certified Used Car
Which type of insurance is usually required if you finance your car purchase? rental insurance Collision and Comprehensive Insurance towing insurance medical payment insurance
Collision and Comprehensive Insurance
An insurance policy that will pay your loan obligation if you die or are disabled. Uninsured or Underinsured Motorist Insurance Collision & Comprehensive Insurance Credit Life Insurance GAP Insurance
Credit Life Insurance
If you car is totaled or stolen, the insurance covers the loan value of your car instead of the car's current market value. Collision & Comprehensive Insurance GAP Insurance Liability Insurance Uninsured or Underinsured Motorist Insurance
GAP Insurance
Which is an example of making a major and unexpected car repair? Refilling the windshield wiper fluid Changing the oil Rotating the tires Replacing the engine
Replacing the engine
What should you do before you go shopping for a car? Look at car magazines Visit dealerships and say "just looking" Research car prices, safety, fuel economy, insurance, and financing Pick your favorite car color
Research car prices, safety, fuel economy, insurance, and financing
Which of the following will increase the cost of the loan? When the length of the loan decreases When the interest rate (or APR) decreases When the interest rate (or APR) increases When the dealer offers 0% interest
When the interest rate (or APR) increases
Which one is NOT a place where you can get a car loan? credit union investment broker car dealer bank
investment broker
The manufacturer's initial charge but not the final cost to the dealer. dealer sticker price invoice price MSRP dealer cost
invoice price
What is the type of insurance that covers bodily injury and property damage to others? comprehensive liability uninsured motorist collision
liability
The amount of money you pay for your insurance policy. APR Credit score extended warranty premium
premium
Insurance is based on the concept of _______ and __________? risk and loss profit and cars risk and return profit and loss
risk and loss
Which is usually the biggest vehicle expense? sales tax license and registration the cost of the vehicle routine maintenance
the cost of the vehicle
What is the type of insurance that covers you when you are injured by a hit-and-run driver? collision comprehensive uninsured motorist liability
uninsured motorist
When you owe more on your vehicle than it is worth. bait and switch premium deducible upside-down
upside-down
The annual percentage rate for a loan. Also known as the interest rate. Base price invoice price MSRP APR
APR
What should you do on a test drive? Drive the car across the country Drive the car around the dealership lot Drive the car by your friend's house to see if he likes the car Drive the car for at least 10 minutes and 10 miles
Drive the car for at least 10 minutes and 10 miles
Original warranty on a new car and usually lasts for three years or 36,000 miles. Factory-to-Dealer Incentives Factory Warranty Factory-to-Dealer Holdbacks Extended Warranty
Factory Warranty
Covers bodily injury or property damage that YOU cause to another person and/or vehicle. GAP Insurance Uninsured or Underinsured Motorist Insurance Liability Insurance Collision & Comprehensive Insurance
Liability Insurance
What is one advantage of leasing versus buying a vehicle? Must return all items in car Limited annual mileage You don't own the car Lower monthly payments
Lower monthly payments
What should you do when dropping your car off at the mechanic? Don't sign a blank repair order all of these get the estimate in writing describe the symptoms
all of these
Which of the following is an advantage of buying a used car? Reduced purchase cost May include some warranty protection Reduced depreciation all of these
all of these
A plan for spending and saving money during a particular period. budget factory warranty credit score APR
budget
Amount of money you will have to pay back in addition to the money you borrowed. deductible premium cost of the loan budget
cost of the loan
The score that evaluates your credit-worthiness and determines the rate of interest you are eligible to receive. dealer cost VIN invoice price credit score
credit score
The true cost of the vehicle to the dealer after subtracting holdbacks and rebates from the invoice price. dealer sticker price Factory-to-Dealer Incentives dealer cost MSRP
dealer cost
What cost do you want to add a 2% - 8% markup to when making a reasonable offer on a car? base price dealer cost MSRP invoice price
dealer cost
A set amount of money that you, the insured, must pay before an insurance company will pay for a loss. deductible factory warranty budget GAP Insurance
deductible
The steady decline in the resale value of any vehicle that you buy. cost of the loan depreciation credit score APR
depreciation
The amount of money you pay upfront for a car. down payment monthly payment APR premium
down payment
