Personal Finance Courses: Vehicle Acquisition

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1.
Liability coverage on an automobile insurance policy covers damages that you cause to _______.
Choose wisely. There is only one correct answer.
Other people. Liability covers others, not you. Other forms of coverage will cover you.
2.
What is probably the biggest advantage of buying a used vehicle instead of a new one?
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The price. For most people, price is the biggest advantage.
3.
If your take-home pay after taxes is $1,000 a month, then your car payments should ideally be how much at the most?
Choose wisely. There is only one correct answer.
$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
4.
Most car leases state an annual mileage limit.
Choose wisely. There is only one correct answer.
True. The limit is usually between 10,000 and 15,000 miles.
5.
Your car's license plate establishes you as the legal owner of the vehicle.
Choose wisely. There is only one correct answer.
False. The title, not the license plate, does this.