Personal Finance Courses: Vehicle Acquisition

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1.
If your take-home pay after taxes is $1,000 a month, then your car payments should ideally be how much at the most?
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$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
2.
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.
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True. It is a good idea to budget for these costs so you have money available for them.
3.
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.
4.
Which of the following is a disadvantage of leasing a new car?
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All of the above. All these factors are potential disadvantages of a new car lease.
5.
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.