Personal Finance Courses: Vehicle Acquisition

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1.
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.
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.
Before you buy a car, you can get a pre-approved loan from a financial institution.
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True. This can be to your advantage when negotiating the terms of the deal.
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.
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.