Personal Finance Chapter 23

Monthly car payments should be no more than __________ percent of the money you have left after paying all of your other bills.

20

Which of the following publications is dedicated to used vehicle listings?

Auto Trader

What is the single greatest cost of owning a vehicle?

Depreciation

When is the best time to get credit approval?

before visiting car dealers.

Which of the following vehicles would most likely have the highest insurance rate?

brand new sports car

License tag fee that must be paid annually for your vehicle. The license plate carries a sticker showing that you have paid he current year's renewal fee.

car registration

Dealer add-ons can add great value to your vehicle.

false

It is impossible to determine a fair price for a new car.

false

Most people spend more of their income on transportation than on any other item.

false

Older vehicles that people value as collectors' items and that often increase in value are referred to as lemons.

false

With a vehicle's VIN, you can determine all of the following except

how quickly the vehicle can go from 0 to 60

a used car

is likely to need more repairs than a new car.

Written agreement allowing vehicle use for a specified time period and monthly payments with out ownership with the option to buy at the end of the agreement

leasing

It is illegal in the state of Illinois to drive without auto insurance.

true

The best way to buy a car is with cash.

true

When you compare the prices of different vehicles, be sure to compare models that have the same options.

true

You should negotiate the price for a new car separately from the price of your trade-in.

true

In most cases, the most important factor in determining a car's resale or trade-in value is

vehicle's age

Alphanumeric number that identifies each vehicle manufactured or sold in the United States.

vin