Personal Finance Courses: Vehicle Acquisition

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1.
Cars with the lowest prices will necessarily have the lowest costs of ownership over time.
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False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.
2.
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.
3.
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.
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.
Your car's license plate establishes you as the legal owner of the vehicle.
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False. The title, not the license plate, does this.