Personal Finance Lesson 13A Cars - Buy Cash, Finance or Lease

If you want to pay cash for a car, it is better to buy from a private party or auto broker.

True

False

One of the wisest means of financing a car is to go through a bank or credit union

True

False

Leasing a car simply makes car payments; you're paying for the privilege of driving a newer car. Also, there is a buyout, the remaining balance at the end of the lease.

True

False

For financing or leasing a car, a car lot or dealership will do the following:

Fill out a finance application, pull your credit, and have you sign paperwork on the status of the car

Fill out a loan application and sell the car as is

Take hours for financing when it takes minutes

Try to make the sale regardless of your financial needs or wants

Comprehensive car Insurance is usually mandatory as part of financing or leasing a car

True

False

When you purchase a car for cash, you have the following fees:

Price of the car, licensing, title transfer, registration, taxes, insurance costs

Licensing, title and registration fees

Mechanical maintenance fees

Interest

Depreciation is

When a car or object loses value over time

When a car or object increases value over time

When the interest is paid, not the principle

When the principle is paid, not the interest

Cars that are "economy" are

Often fuel efficient and cheaper to maintain

Fuel inefficient and expensive to maintain

Wear out quicker than other cars

Are heavier than most cars

An example of public transportation is

Bus, taxi, Uber, or other similar transportaion

Non-gasoline transportation like bicycles

Roller skates & skateboards

Hiking

Personal Finance Lesson 13A Cars - Buy Cash, Finance or Lease

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