Personal Finance Courses: Vehicle Acquisition

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1.
When you lease a car, who pays for the insurance on it?
Choose wisely. There is only one correct answer.
You. You must pay for the insurance on it.
2.
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.
3.
Who sells extended warranties on vehicles?
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All of the above. All of these parties sell extended warranties.
4.
Cars with the lowest prices will necessarily have the lowest costs of ownership over time.
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False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.
5.
When shopping for a car at a dealership, what might be the purpose of mentioning other dealerships that are offering the same car?
Choose wisely. There is only one correct answer.
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.