Purchasing Vehicles

What is the main difference between an auto lease and an auto loan?

• On both auto loan and auto lease the borrower is purchasing a car

• On both auto loan and auto lease the borrower will have to return the car

• On an auto loan the borrower is purchasing the vehicle while on a lease the borrower returns the car at the end of the terms

• On an auto loan the borrower will have to return it while on a lease the borrower is purchasing the vehicle

What is the total amount you would pay for a new car if the monthly payments are $315.00 for 4 years?

• $15,120.00

• $1,260.00

• $16,734.00

• $13,278.00

Janet Smith is shopping for a new sport utility vehicle. A portion of the sticker for an SUV is shown below. What is the sticker price?

SUV Base Price $22,150

Optional Equipment Description Anti-Lock Brakes (ABS) $950

Automatic Transmission (ATO) $670

Deluxe CD/Radio $1,520

Destination Charge $699

• $25,439

• $25,989

• $15,974

• $10,249

Vehicle manufacturers are required by law to place a ​ _______ _____​ on a new vehicles window.

Dalton is buying a vehicle with a base price of $31,145. Options total $1,245. The destination charge is $352. What is the sticker price of this car?

• $ 32,742.00

• $ 45,678.00

• $ 32,390.38

• $ 35,260.50

Jamar Burr drove 10,500 miles in his car last year. The total of fixed cost was $2,215 and the variable cost was $1,985. What is the total annual cost?

• $4,750.00

• $3,900.00

• $4,200.00

The term __________ refers to a decrease in the value of property as a result of use and age

• capitalized cost reduction

• deprecitation

• amortization

• residual value

Extra's for convenience, safety, or appearance such as sunroof, air-conditioning, and tinted glass.

• Sticker price

• Base price

• Options

• Destination charge

This is the price of the engine, chassis (vehicle's frame), and any other piece of standard equipment for a particular model.

• Sticker price

• Base price

• Options

• Destination charge

A fixed amount of money, percentage of the selling price or item of value that is traded in to reduce the cost of purchasing a vehicle.

• Credit history

• Loan terms

• Down payment

• Annual percentage rate (APR)