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?
Choose wisely. There is only one correct answer.
Sales tax. Sales tax is deductible.
3.
Liability coverage on an automobile insurance policy covers damages that you cause to _______.
Choose wisely. There is only one correct answer.
Other people. Liability covers others, not you. Other forms of coverage will cover you.
4.
If your take-home pay after taxes is $1,000 a month, then your car payments should ideally be how much at the most?
Choose wisely. There is only one correct answer.
$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
5.
On average, auto insurance will cost you less if your car is _______.
Choose wisely. There is only one correct answer.
Used. Generally, insurance on a used car costs less when the car is used.