1. For most people, what percentage of monthly income is reasonable to budget for car expenses?
Less than 5%
Less than 10%
10% to 15%
20% or more
portion of your auto insurance covers:
Damages for the other driver if the accident is your fault.
Your medical costs.
Repairs for your own car.
Losses from theft, fire and natural disasters.
3. If you buy a three-year-old used car, how much could you save over a new version of the same model?
30% to 40%.
4. The capitalized cost of a lease is:
The value of the car at the start of the lease.
The value at lease end.
The interest charge.
How much value was lost over the lease term.
5. You are likely to get the lowest rate on an auto loan from:
A local bank.
Your credit union.
6. The holdback is a payment from:
The manufacturer to you as a rebate.
The manufacturer to the dealer.
The dealer to you.
The lending bank to you.
7. When you negotiate you want to offer:
A discount from the MSRP or list price.
A set amount over the dealer's invoice price.
The price the salesman suggests.
The price set by the manufacturer.
8. Plan on adding state and possibly local sales tax averaging:
2% to 3%
5% to 8%
10% to 12%
9. A typical new-car warranty runs for:
10. A typical Web buying service gives you:
Two or three competitive bids.
One bid from its affiliated dealer near you.
A list of dealers to call.
A promise to have someone call you
In Lesson 17
Top things to know
The right vehicle
What can you afford?
New or used?
Buy or lease?
Shopping for money
Setting your target price
Negotiating the best deal
Closing the deal
Buying on the Web
Find personalized rates:
Rates provided by Bankrate.com.
Money Essentials Lessons
Making a budget
Basics of banking and saving
Basics of investing
Investing in stocks
Investing in mutual funds
Investing in bonds
Buying a home
Employee stock options
Saving for college
Kids and money
Planning for retirement
Hiring financial help
Buying a car