Personal Finance Courses: Vehicle Acquisition

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1.
Who sells extended warranties on vehicles?
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All of the above. All of these parties sell extended warranties.
2.
The price that a car dealership paid for a vehicle it bought is called the _______.
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Wholesale price. Dealers buy vehicles at wholesale prices and then resell them at retail prices.
3.
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.
4.
When preparing to buy a vehicle, it is a good idea to prepare financially as well. Some costs, such as gas and insurance, should be factored into your monthly budget.
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True. It is a good idea to budget for these costs so you have money available for them.
5.
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.