Personal Finance Courses: Vehicle Acquisition

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1.
If you are leasing a new vehicle and planning to drive it more miles than are allowed in the contract, _______.
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You will have to pay a fee for the excess miles. The contract specifies a certain number of miles that you can drive.
2.
The cost of ownership of a vehicle is the same as the price you paid for it.
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False. The cost of ownership is the various expenses you will pay for the vehicle over the time that you own it.
3.
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.
4.
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.
5.
If you see a group of three numbers such as 50/100/15 in reference to auto insurance coverage, what type of coverage are you seeing?
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Liability coverage. These numbers refer to the limits on bodily injury per person, bodily injury per accident, and property damage.