Personal Finance Courses:
Vehicle Acquisition
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
With regard to cars, what is the "dealer's price"?
Choose wisely. There is only one correct answer.
The price the dealer paid when it bought the car
The price the dealer wants you to pay for the car
The manufacturer's suggested retail price
The retail value
The price the dealer paid when it bought the car. It is also known as the wholesale price.
2.
Cars with the lowest prices will necessarily have the lowest costs of ownership over time.
Choose wisely. There is only one correct answer.
True
False
False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.
3.
It is always good to buy an extended warranty on a vehicle.
Choose wisely. There is only one correct answer.
True
False
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.
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
False
True. This can be to your advantage when negotiating the terms of the deal.
5.
Which of the following is a disadvantage of leasing a new car?
Choose wisely. There is only one correct answer.
If you decide to buy the car when the lease ends, you'll pay more than if you had bought it initially.
Leases charge you extra per mile if you exceed the annual mileage limit.
It's expensive to break a lease early; there are penalties.
All of the above
All of the above. All these factors are potential disadvantages of a new car lease.
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