Buying A Car #2

Front

What is the total cost of ownership (TCO)?

Back

The sum of costs in order to purchase, operate, and maintain a vehicle.

Front

If a car costs $25,000 and the down payment is $3,750, what is the total amount to be financed?

Back

$21,250

Front

What is an advantage of buying a used car?

Back

The car is cheaper to purchase.

Front

What does 'liability' mean in the context of car insurance?

Back

Responsibility for others' losses in an accident you caused.

Front

What is required to legally drive a car?

Back

Insurance.

Front

What is a down payment?

Back

An initial payment made when something is bought on credit.

Front

What is MSRP?

Back

Manufacturer's Suggested Retail Price, the price recommended by the manufacturer.

Front

What is the purpose of a lease in car buying?

Back

To rent a vehicle for a specified period while making monthly payments.

Front

What are the potential risks of buying a used car?

Back

The car could have faults, may not last as long, and could need repairs.

Front

What is the difference between comprehensive and collision insurance?

Back

Comprehensive covers non-collision incidents; collision covers damage from accidents.