Personal Finance Courses: Vehicle Acquisition

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
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.
If you get a loan from a financial institution before you actually buy the item you are planning to purchase, the loan is called _______.
Choose wisely. There is only one correct answer.
Preapproved. Preapproved means that you were approved for a loan in advance of actually needing it.
3.
Why is it important to know your credit score if you plan to lease a vehicle?
Choose wisely. There is only one correct answer.
Your credit score factors into your monthly payments. It affects your lease rate, which helps determine your monthly payments.
4.
The price that a car dealership paid for a vehicle it bought is called the _______.
Choose wisely. There is only one correct answer.
Wholesale price. Dealers buy vehicles at wholesale prices and then resell them at retail prices.
5.
Cars with the lowest prices will necessarily have the lowest costs of ownership over time.
Choose wisely. There is only one correct answer.
False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.