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.
Most car leases state an annual mileage limit.
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True. The limit is usually between 10,000 and 15,000 miles.
3.
When negotiating the price of a car, which starting point is likely to save you the most money?
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The dealer's price. The dealer's price is what the dealer originally paid for it. Negotiating up from this, rather than down from the asking price, may save you more money.
4.
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.
5.
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.