Personal Finance Courses: Vehicle Acquisition

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1.
What well known book lists both wholesale and retail prices of used cars?
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Kelley Blue Book. This book is the most well known source of both wholesale and retail prices of used cars.
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.
Which of the following is a disadvantage of leasing a new car?
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All of the above. All these factors are potential disadvantages of a new car lease.
4.
On average, auto insurance will cost you less if your car is _______.
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Used. Generally, insurance on a used car costs less when the car is used.
5.
It is always good to buy an extended warranty on a vehicle.
Choose wisely. There is only one correct answer.
False. There is no set answer to this; it will depend on whether you think you will need a lot of repairs in the future.