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Who sells extended warranties on vehicles?

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The retailer you bought the vehicle from

The manufacturer

Warranty sellers

All of the above

All of the above. All of these parties sell extended warranties.

The price that a car dealership paid for a vehicle it bought is called the _______.

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Wholesale price

Retail price

Blue book value

Wholesale price. Dealers buy vehicles at wholesale prices and then resell them at retail prices.

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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$100

$200

$400

$500

$200. A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.

Cars with the lowest prices will necessarily have the lowest costs of ownership over time.

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True

False

False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.

Which of the following is a disadvantage of leasing a new car?

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If you decide to buy the car when the lease ends, you'll pay more than if you had bought it initially.

Leases charge you extra per mile if you exceed the annual mileage limit.

It's expensive to break a lease early; there are penalties.

All of the above

All of the above. All these factors are potential disadvantages of a new car lease.

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