Personal Finance Courses: Vehicle Acquisition

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1.
If your take-home pay after taxes is $1,000 a month, then your car payments should ideally be how much at the most?
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$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
2.
When shopping for a car at a dealership, what might be the purpose of mentioning other dealerships that are offering the same car?
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The dealer might match their prices. The intimidation might work for some, but the main purpose is to make the dealer compete with the other dealers to get your business.
3.
Liability coverage on an automobile insurance policy covers damages that you cause to _______.
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Other people. Liability covers others, not you. Other forms of coverage will cover you.
4.
When you lease a car, who pays for the insurance on it?
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You. You must pay for the insurance on it.
5.
The cost of ownership of a vehicle is the same as the price you paid for it.
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False. The cost of ownership is the various expenses you will pay for the vehicle over the time that you own it.