Personal Finance Courses: Vehicle Acquisition

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1.
When negotiating the price of a car, which starting point is likely to save you the most money?
Choose wisely. There is only one correct answer.
The dealer's price. The dealer's price is what the dealer originally paid for it. Negotiating up from this, rather than down from the asking price, may save you more money.
2.
What part of a car lease's monthly payments is tax-deductible for consumers (as opposed to businesses) who lease?
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Sales tax. Sales tax is deductible.
3.
It is always good to buy an extended warranty on a vehicle.
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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.
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.
Before you buy a car, you can get a pre-approved loan from a financial institution.
Choose wisely. There is only one correct answer.
True. This can be to your advantage when negotiating the terms of the deal.