Personal Finance Courses: Vehicle Acquisition

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1.
When preparing to buy a vehicle, it is a good idea to prepare financially as well. Some costs, such as gas and insurance, should be factored into your monthly budget.
Choose wisely. There is only one correct answer.
True. It is a good idea to budget for these costs so you have money available for them.
2.
Financial advisors usually recommend that your car payments should be how much of your take-home pay at the most?
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20%. This is the common recommendation.
3.
Liability coverage on an automobile insurance policy covers damages that you cause to _______.
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Other people. Liability covers others, not you. Other forms of coverage will cover you.
4.
Most car leases state an annual mileage limit.
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True. The limit is usually between 10,000 and 15,000 miles.
5.
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.