Quiz

Buying a Car • Mercer County, WV

10 questions • Complete the quiz to finish this module.

Question 11 / 10

What is the 20/4/10 rule?

A. 20 months to pay, 4% interest, 10 paymentsB. 20% down payment, 4-year loan, total costs under 10% of monthly incomeC. 20 miles per gallon, 4 doors, 10 cup holdersD. 20% off the sticker price, 4 free services, 10 years warranty

Question 22 / 10

Why is getting pre-approved important for a car loan?

A. It is required by law to get a car loanB. It lowers your insurance costsC. It guarantees you get the car you wantD. It gives you a rate to compare and leverage at the dealership

Question 33 / 10

What is the total cost of ownership?

A. Just the monthly car paymentB. The down payment plus monthly paymentC. All costs including car price, insurance, gas, repairs, registration, and maintenanceD. The interest paid over the life of the loan

Question 44 / 10

What should you negotiate at a car dealership?

A. The monthly paymentB. The out-the-door price (total cost)C. The color of the carD. The warranty length

Question 55 / 10

What does a vehicle history report show?

A. The color the car has been paintedB. All the owners and their namesC. Accidents, title issues, mileage, odometer rollback, and previous ownersD. The fuel economy of the car

Question 66 / 10

What is GAP insurance?

A. Insurance for travel by carB. Insurance that covers the gap between loan amount and car value if the car is totaledC. Insurance for parking lot damageD. Extra insurance you need if your car is old

Question 77 / 10

What is a common dealer trick?

A. Offering a low interest rateB. Focusing on monthly payment instead of total priceC. Showing you the car before you sign paperworkD. Offering a free oil change

Question 88 / 10

Before buying a used car, you should:

A. Test drive it once and make an offerB. Get an independent mechanic inspectionC. Ask the seller if it is goodD. Check online reviews of the model

Question 99 / 10

What do lemon laws protect you from?

A. Buying yellow carsB. Cars that get poor fuel economyC. Vehicles with serious recurring problems that cannot be fixedD. Cars that are too expensive

Question 1010 / 10

Why is buying a 2-3 year old car often smarter than buying brand new?

A. It is always cheaper in monthly payments and in interest ratesB. New cars lose 20-30% of value in the first 2-3 years, so you avoid the big depreciation hitC. Older cars have fewer recalls than newer carsD. You do not need insurance on used cars