Personal Finance Courses: Vehicle Acquisition

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1.
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.
2.
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.
3.
What is a vehicle's cost of ownership made of?
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The various expenses you will pay for the vehicle over the time that you own it. Cost of ownership takes into account any costs you will pay while owning it.
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?
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$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
5.
How might the "loss of use" coverage help you if your car is being repaired for an insured loss?
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It would pay for a temporary car for you. The loss of use coverage reimburses you for the temporary inability to use your vehicle.