Personal Finance Courses: Vehicle Acquisition

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1.
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.
2.
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.
3.
Financial advisors usually recommend that your car payments should be how much of your take-home pay at the most?
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20%. This is the common recommendation.
4.
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.
5.
Who sells extended warranties on vehicles?
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All of the above. All of these parties sell extended warranties.