Personal Finance Courses: Vehicle Acquisition

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1.
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.
2.
You can get an auto loan at a bank, a credit union, or from the dealer. Which of these options likely offers the least favorable terms?
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Dealer. As a general rule, banks and credit unions give you better terms.
3.
With regard to cars, what is the "dealer's price"?
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The price the dealer paid when it bought the car. It is also known as the wholesale price.
4.
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.
5.
What is probably the biggest advantage of buying a used vehicle instead of a new one?
Choose wisely. There is only one correct answer.
The price. For most people, price is the biggest advantage.